Jeffery (2002) explained that, globalisation is a process
that enable to expands an object such as economic scale and cultural becomes
massively. It brings more opportunity and way for human to interact and connect
to the world, also improves the communication. Globalisation increased the
international trading, which means company has more chances to import and
export the goods and services in a bigger market, this has an important share
in GDP in various country (Surugiu. R and Surugiu, 2015). So in the business market,
it is common to see many small firm decided to become globally with exporting
their goods or services to another country.
Morrison (2011) indicated that, in the global business
environment, company have to come across different aspect when entry to the
foreign community, such as technological, cultural, ecological, financial,
legal and political etc, all these aspects could affect their corporation.
Typically, the businesses expansion opportunities vary in terms of the risks
that incur as well as the amount of control businesses have.
One of the main reason of why company go global is because
they are able to make more profit. Company could access additional customers
and broaden their consumer base when they expand the market scale to
international, as the higher demands and needs in a bigger market, it boots the
company profit and sales. Moreover, outsourcing is one of the benefit for manufacturing
that appear with globalisation phenomenon (Weiss, 2017). There are many
multinational corporation setups their production line and factories in
developing countries, in order to obtain more material sources overseas, and
cost saving in some low wages labour countries. Franchising is one of the good
way for business to expand their brand internationally (franchiseindia.com, 2008),
it is more time efficiency and less risks way to bring their brand aboard.
When a company decided to expand internationally, the
marketing strategy have to specifically design based on the consumer’s
expectations and interests in other country. Aliber, R and Click, W (1993)
mentioned that, the various of culture background could result in the different
consuming behaviour and the value of purchasing, therefore, an appropriate
marketing strategy is essential for a business to step in the foreign market,
it determines whether they success or not. Also, market strategy helps a firm
to have a certain understanding of the local competitors, so they can setup the
best business objective to gain the competition advantages in overseas market.
Foreign direct investment has been a controversial issue in
global economy, it is connected to the domestic factors of economic development
or the international trade impact on economic development, and they are all intermeshed
with one another. Foreign direct
investment aims to maximising benefits and minimising costs, which can use to
look at the reason why would multinational corporations select one country to
invest in over the other (OECD, 2002).