Discussion 4.1_ MGMT 440

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Nov 24, 2024

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Uploaded by DeanFogKouprey185

Describe in your own words what de-internationalization is. What processes can be the result of de-internationalization? De-internationalization pertains to the strategic choice made by a company to reduce or discontinue its international business operations and activities in foreign markets. Essentially, this process entails diminishing the worldwide impact of a business and redirecting its endeavors toward domestic or a restricted set of markets. De-internationalization refers to the inverse trajectory of international expansion, wherein a company that had previously entered foreign markets to pursue growth prospects subsequently opts to withdraw from those markets for a variety of reasons. De-internationalization can give rise to various processes. A frequently observed procedure involves the termination of foreign subsidiaries, branches, or offices. Companies may encounter difficulties in maintaining their operations in specific international markets due to various factors, including adverse economic conditions, fierce competition, cultural obstacles, intricate regulatory frameworks, or inadequate demand for their offerings. Consequently, they might choose to terminate these global operations in order to mitigate financial losses and redirect their resources. An additional procedure that may transpire involves the divestiture of assets or the disposal of international business units. Companies may opt to divest their international subsidiaries or business divisions by selling them to other firms that possess a more robust market presence or strategic inclination in those specific markets. Divestment enables the company to optimize its operations and focus on its fundamental competencies and target markets. Moreover, the process of de-internationalization can entail a transition in global strategic orientation towards a more localized perspective. Rather than attempting to accommodate diverse international markets through a standardized product or service, a company may opt to concentrate on its domestic market or a limited number of foreign markets where it can customize its offerings to align with specific local preferences and demands. In general, de-internationalization can be viewed as a strategic reaction to the challenges or shifting priorities encountered by a company in its international endeavors. The optimization of a company's resources and enhancement of its competitiveness in selected markets can be achieved through a range of processes, such as closure, divestment, and localization. https://link.springer.com/article/10.1007/s11301-022-00276-7 https://www.igi-global.com/dictionary/causes-of-de-internationalization/45251 https://www.investopedia.com/terms/i/internationalization.asp

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