International Management Essay Example | Topics and Well Written Essays - 250 words

International Management - Essay Example Interaction of these companies with local companies can act as the basis through which ideas, knowledge and skills are shared. These companies are quick to share their developmental aspects, and in so doing local companies can access a gateway through which they can better their technologies given their level of output production. Knowledge transfer can contribute to the performance of local companies. Many local companies are hardly exposed to the operations and modes of business of industrious multinational companies. Transfer of knowledge from highly effective international companies is likely to impact positively on the operations of local companies3. Improved knowledge base would boost resource allocation decisions and further impact on cost minimization with maximization of revenues being the sole objective4. Achievement of the three factors guarantees a highly effective and efficient business performance. Taking products to foreign markets is another internalization factor. This constitutes cross-border trade. In other words, international trade will proliferate. Meeting international quality standards of goods and services is the fundamental underlying factor in this aspect. International prices of goods and services are always better than the domestic prices5. The profit motive for producing and manufacturing companies drives them towards adopting the right production techniques in order to maintain a constant supply of goods and services in the international markets, while at the same time satisfying the domestic