The Benefits of Internationalization

Going global is becoming increasingly necessary and beneficial for tech companies.

Published on

October 1, 2019

The benefits of internationalization have been growing steadily in the past years. With today’s global economy, companies of all sizes are establishing their operations in foreign markets. The global economy is the trade relation between nations due to the rapid advancement of the technologies of the media, transportation, and so on. There is currently an intense movement of international capital. Countries that produce a certain good, input or service, can now trade them worldwide.

The international expansion offers many advantages, including greater opportunities for growth and market diversification. Here we will talk about:

  • Benefits of internationalization;
  • Benefits of internationalization for the company itself;
  • Conclusions.
Benefits of internationalization
Photo by Joe Yates

Benefits of internationalization

Being international from day one does not mean you already have to start selling abroad. This means that you must be aware of world market trends. For instance, to know consumers’ new habits and then using this information to make your business more competitive. This can be applied in your home market too, as niche markets have excellent growth potential. Have a look here to see how you can conduct efficient customer analysis and use various templates.

Before expanding to the foreign market, consider four of these potential advantages of international trade.

Four main benefits of internationalization

If you are thinking of making your company globally active, consider these four benefits of international business expansion.

  1. Increasing Customers and Revenue
Increase customer revenue
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One of the main advantages of international trade is that you can increase your number of potential new customers. With each new market you enter, you can pave the way for business growth and revenue growth.

Companies can also use international markets to introduce unique products and services, which can help maintain a positive revenue stream. To exemplify this we can name Coke that diversifies through global operations. The company increased sales in China, India, and South Korea, benefiting Coca-Cola worldwide. In case you are curious, see what is the growth strategy of Coca-Cola.

  1. Improve risk management after internationalization

One of the significant advantages of international trade is market diversification. Becoming less dependent on a single market can help you avoid risks in your core market.

  1. Increasing competitiveness is also a benefit of internationalization

Companies would have the opportunity to increase their brand awareness in a marketplace where their competitors have not yet entered.

Companies that expand into new markets are forced to innovate and improve their offerings in order to compete with local companies. In addition to that, entering new markets can give you access to better talent, advanced market trends, and innovations in your industry. Some of the benefits of innovation are presented here.

What a lot of companies don’t see is that the combination of these factors can help you not only in new markets, but it can also increase your competitiveness in your own home country.  

  1. Cost savings and access to new technologies

When you enter a new market, your business is exposed to opportunities to benefit from foreign investments that may not exist in your home country. Many governments offer incentives for companies wishing to invest in their region.

Foreign investment can be valuable to your business, accelerating growth, access to cheaper talent, tax relief, easier / cheaper logistics, cheaper commodities, etc.

International expansion can also help companies gain access to new technologies and ecosystems in the sector and in the international workforce. These connections and networks can significantly improve the operations of companies.

International business can also increase a company’s image perception and support future business scenarios. This is due to an increase in brand awareness and brand credibility. If you wish, you can read more about brand awareness here.

The international workforce can offer companies unique advantages such as improved language skills, diverse educational backgrounds, and others. For example, when Netflix expanded to Amsterdam, the company praised the city for allowing Netflix to hire multilingual, internationally-minded employees who can understand consumers and cultures across Europe.

Benefits of internationalization for the company itself

Internationalization is mostly feasible for companies in their later stages. This is when a company is able to design, implement, and establish new products and services. Expanding into the international market seems logical if you can differentiate your products from those in the marketplace.

Larger customer base
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Expansion offers a chance to conquer new territories and reach a larger customer base, thereby increasing sales. For example, companies like Nike and IBM have operations in the Netherlands because they have direct access to millions of European consumers. In fact, the Netherlands’ connection to European markets is one of the reasons why UPS opened its facility in Eindhoven.

Therefore, one of the reasons why international business is considered important is because it provides security to the company so that an economic crisis does not occur.


Internationalization can provide your business with access to a world of opportunities. Leaving your comfort zone to trade internationally can make your business stronger, more successful, and more profitable.

Benefits of international business
Photo by TimJ

Overall, there are many benefits to expanding international business. To summarize, this development can bring companies innovations, upgrades, and efficiencies to their products, services, and the whole business operations.

Do you want to get started?

Internationalizing your business is a challenge that needs to be carefully analyzed and planned to reduce your risks. We have here a few resources that support you with that:

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