Western Governors University (WGU) ITSW3170 D411 Scripting and Automation Final Practice Exam

The motivation of high levels of competition in western markets has historically driven companies to pursue internationalization for several reasons. As domestic markets become saturated and competition intensifies, companies often seek markets beyond their borders to achieve growth and expand their market share. Internationalization allows firms to tap into new customer bases, diversify their operations, and reduce dependency on domestic sales, which can be critical for long-term sustainability and profitability.

When competition is fierce in established markets, businesses may find that profit margins decrease, pushing them to innovate or seek alternative revenue streams. Entering international markets can enable a company to leverage its existing strengths and capabilities in a new environment, facing potentially less competition or different consumer dynamics. Additionally, businesses may find that certain international markets offer more favorable conditions for product launches, less competition, or unique customer needs they can fulfill.

Although declining domestic markets, unstable political environments, and technological advancements in communications all play important roles in influencing a company's international strategy, the primary driver of seeking international opportunities amid high competition highlights the strategic necessity to maintain growth and mitigate risks associated with saturated home markets.