Motivation For International Business Essay

1.4. Introduction

1.5. Background of the Study

According to Ajayi (1999), international business is the process of engaging in trade relationship and activities between two or more countries. The world “international” shows that this form of trade must cross a border or boundary of a country to the other for the process to be complete. International trade has and continues to play an important role in the human development all over the world and not only in Kenya or in African countries. Almost all countries engage in international trade of similar or different types and the benefits of this form of trade goes to the recipients and the countries’ economies that are part of the international trade.

There is no country in the world today, which

And at last, we will turn ourselves towards the main advantages, concerns and problems of going international, as both sides of the coin must be carefully weighed before deciding whether or not to enter the international scene.

2.0. Motivations to go abroad

According to (Micheal Czinkota, 2009) ‘there are a variety of motivational factors that can push or pull an individual or organization along the international pathways. The major types of motivations that have been found to make firms go international are either proactive motivation; which represent stimuli for an organizational-initiated strategic change, or reactive motivation; which describe stimuli that result in an organization’s response and adaptation to changes imposed by the outside environment.’

Some examples of proactive motivations are; Exclusive information, unique products, Technological advantage, economies of scale, profit advantage and Tax benefits. And some examples of reactive motivations are; Overproduction, proximity to customers, declining domestic sales, excess capacity, saturated domestic markets and competitive pressures. These are the main categories of proactive and reactive motivations, which can also be further