IEC Electronics is an American company in New York established in 1966 and deals with electronic components. IEC Electronics manufactures electronic components such as circuit boards, electrical cables, and wires for different industries including the military, healthcare, transport industry among others. Additional activities done by the company are such as testing and analysis of electronic devices (IEC Electronics, 2018). The company’s sales range within $126 million and it has about 500 employees.
The decision whether it is best to Expand Globally
It would be best option to expand globally if the products and services being produced or offered are demanded internationally. If there are many consumers of the product or service in foreign regions but they have difficulty accessing the product because of the geographical distance, it would be best to set up branches in the foreign countries to make the products readily accessible by the customers at affordable prices (Galit, 2017). It would also be a good option to expand globally if the funds, revenues, and profits to be gained through the global operation would be able to sustain and develop the firm. If the parent firm has enough funds and resources to set up other firms in other regions its best to expand globally to increase the organization’s profits.
Benefits and Risks of Globalization
Risks
IEC Electronics may face high taxes and regulatory policies in other countries making the operation of the organization difficult leading to financial losses. Some of the business regulation policies set by the foreign government may be harsh to the extent of limiting product production thus creating a financial for the firm. Unlike the U.S, business in other regions may grow a slow pace due to factors such as leadership, culture among others which may make the firm unstable and prone to collapse (Driver, 2017).
Benefits
Some of the benefits IEC Electronics may realize associated with globalization are such as an increase in profits and revenues since the firm has several branches which produce more electronics among other services to the public thus, generates more money which translates to profits. The company can also benefit from innovation since it has people from diverse cultures who have varying views and ideas which may be implemented by IEC Electronics to enhance productivity and profits.
References
Driver, S. (2017). Going Global: How to Expand Your Business Internationally. Retrieved from: https://www.businessnewsdaily.com/8211-expand-business-internationally.html
Galit, S. (2017). 3 Signs Your Business is Ready to Expand Internationally. Entrepreeur. Retrieved from: https://www.entrepreneur.com/article/287786
IEC Electronics. (2018). Electronic Manufacturing Solutions for Life-Saving and Mission Critical Products. Retrieved from: https://www.iec-electronics.com/
