Companies invest abroad when there is an opportunity to grow business either in new markets, new resources, new strategic assets and/ or improved efficiency.
We help you to evaluate the risks and opportunities.
Exploring new markets in overseas focuses on finding new buyers for goods and services, especially in situations of saturated home markets. New markets are of high interest if they have an advantageous competitor situation and/ or simply bring higher returns than in the home market.
A foreign facility may be able to obtain cheaper or superior access to the inputs of production such as land, labor, capital, and natural resources.
New strategic assets:
Investments abroad in new strategic partners such as i.e. distribution networks or new technologies, or certain aspects of the production process.
Global footprints result in more competitive structural and organizational opportunities. Among those are possible aspects of free trade agreements, lower tariff rates, exchange rate fluctuations etc.
Investing abroad has increased in popularity in countries that are gaining large growth, emerging markets. Emerging economies are welcoming investments from abroad that help to accelerate their growth.