Running head: INTERNATIONAL BUSINESS 1
International Business and Global Economic
Development Student’s name
Institutional affiliation
, INTERNATIONAL BUSINESS AND GLOBAL ECONOMIC 2
Part A: Analyzing Challenges that Canadian Firms Encounter
In the contemporary world, internationalization is not a new practice since the swift
development experienced in emerging markets as well as the growth within the information,
communication, and transportation technologies have greatly transformed the structure of
international markets in the few spans that have passed (Global Affairs Canada, 2018). While
entering into these international markets Canadian businesses can experience various
opportunities and challenges.
1. Opportunities for Canadian Firms
There are numerous opportunities that can be perceived for the Canadian corporations making
their entry into or expansion into the international markets. These opportunities include; getting
access to new customers, reduced costs, and business risk diversification.
Canadian companies making an entry into international markets have a great opportunity to be
able to compete within an environment that is more diversified and get access to new customers.
Canada’s population is just 0.5 per cent of the world population. It will be very beneficial for
the companies in Canada if they could start offering and selling their goods and services to the
other 95 per cent of the population. This move is very attractive as one has a greater prospect of
success by expanding the scope of the market (Canadian Manufacturers & Exporters, 2018).
The entry move into international markets will be helpful in lowering the costs, especially
through offshoring, which has been transformed into an important and famous means which
companies use to reduce their costs. This means that the Canadian companies have their business
activities relocated to other nations or create new operations in other countries like China and
India, since they provide cheap labour, thereby reducing costs (Canadian Manufacturers &
International Business and Global Economic
Development Student’s name
Institutional affiliation
, INTERNATIONAL BUSINESS AND GLOBAL ECONOMIC 2
Part A: Analyzing Challenges that Canadian Firms Encounter
In the contemporary world, internationalization is not a new practice since the swift
development experienced in emerging markets as well as the growth within the information,
communication, and transportation technologies have greatly transformed the structure of
international markets in the few spans that have passed (Global Affairs Canada, 2018). While
entering into these international markets Canadian businesses can experience various
opportunities and challenges.
1. Opportunities for Canadian Firms
There are numerous opportunities that can be perceived for the Canadian corporations making
their entry into or expansion into the international markets. These opportunities include; getting
access to new customers, reduced costs, and business risk diversification.
Canadian companies making an entry into international markets have a great opportunity to be
able to compete within an environment that is more diversified and get access to new customers.
Canada’s population is just 0.5 per cent of the world population. It will be very beneficial for
the companies in Canada if they could start offering and selling their goods and services to the
other 95 per cent of the population. This move is very attractive as one has a greater prospect of
success by expanding the scope of the market (Canadian Manufacturers & Exporters, 2018).
The entry move into international markets will be helpful in lowering the costs, especially
through offshoring, which has been transformed into an important and famous means which
companies use to reduce their costs. This means that the Canadian companies have their business
activities relocated to other nations or create new operations in other countries like China and
India, since they provide cheap labour, thereby reducing costs (Canadian Manufacturers &
