(i) Competition in foreign Market: If research shows that competition in foreign markets is less intense for certain product lines when compared to the domestic market, the firm could capitalise on such opportunity to venture abroad. Assuming a Ghanian company producing of product ventures into Nigeria to compete with her, Nigeria counterpart, the Nigeria based company could retaliate by going into the Ghanaian market to cause a stir in the market : the reaction of the invading Ghanian company will be retreat from the Nigerian market and do a rethink.
(ii) Saturated Domestic market: when the domestic market is no longer favourable, possibly as a result dwindling fortunes or saturated market, the quest to remain viable could be to venture abroad.
(iii)Economies of scale : Going abroad enhances the achievement of economies of scale in research and development, production, marketing , logistics etc. A typical example is a firm that exports her products to many countries via one domestic plant ; the products are bound to be cheaper than the local ones. This explains the reason products tend to be cheaper in Nigeria despite logistics cost and tarriff charges, though rate of smuggling is still high.
(iv) Product life cycle : When a product is closer to the end of its life cycle in the domestic market, it is possible to experience a growth in the market abroad. This provides a veritable avenue for the firms involved to venture abroad to tap such opportunities. International marketing therefore, helps to prolong the life span of company products.
(V) Unfavorable Domestic Business Environment : When the domestic operational environment or condition becomes unfavorable, the foreign market provides an escape route for firms. Such firm could be forced out of a country by high labour cost, excise duties multiple taxes lack of infrastructural facilities, educational tax, value added tax, unfavourable import policy, environmental concern etc.
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