Table of ContentsMarket FactorsCost FactorsCompetitive FactorsAlliance Costs and RisksCross-Cultural ConsiderationsStrategies and forms of international business have continually evolved over the past decades due to continued technological advancements, liberalization of investment flows and increased competition between companies. Growth is an integral part of businesses and also represents a chance for survival. The pressure from competitors to gain significant market share while conducting business requires organizations to be constantly vigilant and monitor their competitors so that they can expand beyond the confines of their domestic markets. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay Expanding organizations on a global scale is the need of the hour, not only because of the breadth of their national markets , but also because in a free trade world, market share in the domestic market is threatened by foreign competitors. Several different reasons compel businesses to seek constant growth and outperform their competitors based on global variables such as environment, pricing, competitiveness, and global business scenario. For many businesses, insourcing is undertaken cautiously as a process involving multiple processes that include planning strategies and minimizing risk. Generally, companies choose the least risky and easiest to access markets and then move and dig deeper in the respective market to gain more market share and gain trust in foreign companies. Market Factors The evolution of different technologies like information technology, expansion of international tourism, vast improvement in living conditions in various developing countries and exchange of cultural heritage have led to the emergence of consumer groups in different countries and regions of the world with comparable education, lifestyles, purchasing power, needs for goods and products. services and aspirations to quality standards. This scenario, combined with the liberalization of international trade and the availability of global distribution channels, opens broad opportunities for companies to market their products and services globally. Cost DriversThe race for market leadership in a segment leads to heavy investments ranging from R&D to innovation and costs of developing new products and differentiating existing products. In the automobile industry, for example, the introduction of a new model can represent an investment of around a billion dollars. In the pharmaceutical industry, the cost associated with the successful development of a new drug is of the same order of magnitude. In the consumer goods sector, the cost of promoting a new brand could reach $500 million. A single internal market would not allow companies to achieve economies of scale and break even with such costs, hence the need to plan their operations with the global market in mind. Competitive Factors Companies around the world are considering insourcing to gain an advantage. and being ahead of their competitors and keeping competition at bay within their country for various reasons such as economies of scale or expertise in exploiting global markets. As noted, globalization..