International Expansion Advanced Biomedical Devices

Advanced Biomedical Devices: International Expansion

Countries selected for exporting

Exporting is faced with many restrictions from the countries and the regional trade bodies that regulate the export of goods and services. Many countries have adopted export restrictions, with the United States, China, and the European Union still implementing the export restrictions. Australia, Canada, Western Europe, and Japan will be the nation’s chosen for export. They have such a sizable number of affluent clients who can afford expensive medical equipment.

Criteria for determining the internalization plan

The foreign market is selected by identifying the fundamental needs for foreign investments and trades. The need for the company to enter the market is analyzed. The barriers that are encountered when entering the country are considered as well as the political climate. Another criterion determining the financial ratios as inflation, interest rate, and credit offer is considered (Miecinskiene et al., 2013). The ecological and geographical powers are also considered with evaluations related to climate, topography, and resources. The following criteria for evaluating determine the potential consumers: their level of education and their loyalty to the company. Other factors are science development and technological innovations, the social and language cultures. At each step, evaluation of the market process occurs, and as the markets decrease with every source, less attractive markets are removed. After evaluation, the selection process occurs with the number of calls reducing at each step until several target markets are left.

How the culture of countries affect International expansion

The language and culture of countries differ in many countries. Different countries may be using the same language, but they have a different interpretation of the words. Google translate is used, but it is not recommended in representing a new company in a new company (Commerce,2017). Different countries have different cultures others expect customer service 24/7, which if the company can not provide, there is a risk of turning away customers.

Countries for Export Based on Criteria

Advanced Biomedical Devices Inc. can export to Netherlands, Belgium, Germany, Switzerland, and Canada (Informa markets, 2020). They do not have high taxes to enter the market. The lower the taxes, the easier it is to comply with the government conditions set before establishing a business in the country. The amount of export depends on whether the FDA has approved the devices.

Arguments that are in favor of globalization

Businesses like globalization allow them to access expertise and information worldwide, broadening their horizons and allowing for greater cooperation and groundbreaking technologies. Companies should move and collaborate across borders because it will enable them to concentrate on their core areas of expertise, resulting in increased collaboration and creativity (Lawlor,2008). Drawing on the expertise, knowledge, and abilities of other companies and organizations improves the probability of business performance. Dr. Bentley has assembled a capable leadership team with representatives who have considerable experience in the European market, the Pacific Rim, and Latin America. The managing director is from Germany, and the other manager has lived in France and Malaysia for several years. Outsourcing the talents ensure that there is a limitless pool of talent to be utilized.

Globalization has positive and negative effects. It can empower the consumer by availing of the goods and services at their doorsteps(Lawlor,2008). There is a lot of increased competition as the products can enter the market at a lower price than expected. With globalization, much competition occurs where the company faces similar companies with the same product.

Role of technology in supporting company performance

The world is changing, and many businesses must adapt to the changing trends in technology at the commerce level and the economic and political level. Through technologies such as phones, cameras allow people to communicate instantly with anyone around the world. Companies can communicate with their employees, clients around the globe give them the up to date news. Various social media sites such as Facebook, Instagram, and Google are used for advertising the business. It eases many life activities and offers great tools such as artificial intelligence and information search(The role of technology in globalization- The Exchange, 2020). Technology plays an essential part in businesses as it includes suppliers, retailers, and customers to create value (Lawlor,2008). With globalization, companies can build their supply chains from all over the world, and the company finds ways to sell products all over the world. Technology increases the use of foreign knowledge to improve their capacity and labor productivity.

Risks present in their international expansion goal

There are many risks involved in internal expansion. Investing in a new market requires a lot of extensive research. The tax codes in different countries and compliance issues is an obstacle that is encountered. The trading standards and regulations in other countries are different. Research is done to ensure that more knowledge is understood on the different pricing as failing to comply with regulations can lead to the halting of business expansion plans. After expansion to other countries, more staff is needed to handle the increased pressure from the business(Commerce,2017). Staff is hired in the new region to understand the language and the culture of the locals. It avoids any case of a language barrier in some countries. Training more staff is a risk as training new sales representatives increases the overheads, and also you have to place your trust in new.

3. What ethical concerns need to be discussed, and what strategies would you recommend to avoid any ethical or socially responsible challenges in this international expansion plan?

Many ethical issues affect a business. The law often guides ethics, and business ethics provides a systematic framework for businesses to follow. The industry should observe rules and moral values while doing business and protecting the legal rights of society, people, and companies, including the environment. Discrimination and harassment are among the ethical concerns. Wage distribution, discrimination based on age, gender, race, color, and religion are ethical concerns. Laws and regulations are placed, and anyone found breaking them may be forced to spend time facing community charges. (Nuseir & Ghandour,2019)The disclosure of company information through websites may damage the company’s reputation and credibility. Avoiding this, many businesses are using double authentication features to protect company information.