3.9.3 Assessing internationalisation

• Internationalisation = act of designing a product that can be readily consumed across multiple countries.
• Methods of internationalisation?

  • Exporting directly to international customers
  • Selling via overseas agents or distributors
  • Opening an operation overseas
  • Joint venture or buying a business overseas
• Reshoring = reverse of offshoring - it involves a business returning production or operations to the host country that had previously been moved to a different international location
• Reasons for reshoring?

  • Greater certainty around delivery times
  • Minimising risk of supply chain disruptions
  • Reducing complexity of supply chain
  • Easier to collaborate with home-based suppliers
• Offshoring = involves the relocation of business activities from the home country to a different international location
• Reasons for offshoring?

  • Access lower manufacturing costs
  • Access potentially better skilled & higher quality supply
  • Make use of existing capacity overseas
  • Take advantage of free trade areas
• Disadvantages of offshoring?

  • Longer lead times for supply & risks of poorer quality
  • Implications for CSR
  • Additional management costs
  • Communication