International_Bus._Law_and_Its_Environment,_Ch._1_Q1

ST would benefit greatly if it was to increase its export activities as the global marketplace offers companies many opportunities today. By increasing their export activities ST would firstly gain higher sales and profits, but would also increase possibilities for the company to develop in the future, by gaining a foothold and knowledge of the wider marketplace. If ST were to begin their further expansion into the global marketplace by beginning with exporting, they would be choosing the option for international business which would involve the least amount of risk in political, economic, legal and financial areas. This option might then be the most appealing to directors, as by choosing to expand the export market, they gain the benefits of doing business internationally but with the least amount of risk to the company. In today’s economy the European and Eastern industries have gained a lot of recognition for the quality of their products and the work that has gone into their development. ST Inc. should consider their company size, exporting knowledge, amount of risk they are willing to take and their level of commitment to the venture before undergoing their entrance into a new market. In order to be successful in the global marketplace it is a must to commit the company to this development. Huge amounts of time and resources are needed, fin order to research into the country and economy you are about expand, which is necessary in order to ensure the best possibilities for success. There must be a constant watch kept on the state of the countries economy and the political and legal sectors of the company, to make certain that the marketplace is still suitable for your company and that any changes aren’t going to occur which will affect your company that you are not aware of or prepared for. The company must look into any cultural or religious differences that may affect how the company must operate in this environment. For example, if ST were to expand into India, learning about the religion and its importance in relation to business and also about business etiquette in Indian culture would be vital to have success in the marketplace.