One of the main reasons why this company is going international is because it is important for companies to diversify their investments as it is vital for a company to have their investments spread into different countries. The United States was chosen as the host country because of their stable political and economic environment, in combination with Australia’s stable economy and government it creates the perfect situation to grow a business (O’Brein, 2018). The added benefit is the commonality in the two countries’ language, English is both of these countries main languages making communication between the nations easy. Another reason that it is important for this company to go international is the messaging behind the product which aims to help spread knowledge of the Aboriginal people in Australia through the designs of the jewelry.
This company will be participating in international trade, which means that they will be trading with one other nation abroad. The method of entry into the market in the United States will be exporting goods. This is the lowest level of involvement and involves shipping the product to a foreign country in exchange for money (Sternquist, 2007). The advantage of this is the minimal financial risk that is involved with it. This method of entry will help to produce the best profits for the company and because of the good relationship between Australia and the United States trade and tariffs will be easy to navigate.
