Write 6 page essay on the topic Questions Chapter 5 & Chapter 6.The companies would adopt globalization strategies when seeking to strengthen their position in the global market by increasing their ma

Write 6 page essay on the topic Questions Chapter 5 & Chapter 6.

The companies would adopt globalization strategies when seeking to strengthen their position in the global market by increasing their market share and brand awareness. The process of a firm going global begins with export-import activity, then minimal change in operation or management, then direct overseas investment to be followed by the most involved phase of substantially increasing foreign investment. Therefore, companies globalize so as to benefit from technologies and industries from abroad. These reasons have been categorized as proactive or reactive or both by Pearce and Robinson (2012). Proactive reasons for globalization are the reasons that a company initiates and later on followed by other players in the industry. These reasons include search for additional resources, economies of scale, power and prestige, synergy, attraction by incentives, need for new and expanded markets, protection of home market and to exploit firm-specific advantages. On the other hand, companies could be driven by reactive reasons to globalize where a trend set by a competitor would be adopted. The reactive reasons for firms going global include trade barriers, international customer demand, international competition, chance and regulation. In spite of both reasons being practiced in the modern business environment, proactive reasons have been noted to yield more beneficial long-term returns.