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Reasons for going overseas Companies moves beyond domestic markets into international markets for the following reasons: *Potential demand in foreign market *Saturation of domestic markets *Follow domestic customers that go abroad *Bandwagon effect *Comparative advantage - some countries possess unique natural or human resources that give them an edge when it comes to producing particular products. This factor, for example, explains South Africa's dominance in diamonds, and the ability of developing countries in Asia with low wage rates to compete successfully in products assembled by hand.
*Technological advantage - In one country a particular industry, often encouraged by government and spurred by the efforts of a few firms, develops a technological advantage over the rest of the world...
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