Why would a firm choose to trade internationally, reasons and the plan Assignment

Why would a firm choose to trade internationally, reasons and the plan - Assignment Example Your assignments requires that you utilise at least six references in addition to your text, preferably including some journal articles. You may use no more than two URL Websites (This does not refer to journal articles) Background: Content  Incontinence (CI)  is an Australian  Biomedical Company.  It is a third  generation  offshoot business of  a  family controlled company. The founders, two German  migrants with exceptional engineering skills  have  pioneered  plastic  injection  moulding in  Australia and have  a worldwide  reputation for  their  injection  moulds. They supply  industry  worldwide with  their products manufactured to precise specification in Australia. They  have followed the  Mittelstand  philosophy  of  Germany's  manufacturing sector. Two third generation  members of  the family  have reached the  pinnacle  of surgery  and  pioneered  new surgery  and techniques to treat  patients su ffering from  bladder and  urinary  tract illnesses and also from prostate  problems including cancer.  Their  most recent  treatment  treats  incontinence  by inserting  an artificial sphincter around the  urinary tract to allow incontinent patients  to control  the  emptying of the bladder. This is done  by  activating  a micro  chip inserted in  a flap  in the abdomen using a small device  much like a remote control for  a motor car.  ... facing the  company  is how to  internationalize this  new and potentially  huge business.  The traditional  family approach of manufacturing and exporting to specification may not be the best way.  The product  is not just the hardware (artificial sphincter,  controller, software and switching  device) but the  diagnostic techniques, the  operation, the  knowledge  and experience. Your task is to  answer the  following questions  in the context of this company Question 1: a. Why  would  a firm like  this  choose to trade  internationally? State  your reasons clearly and  concisely.   b. Describe concisely the main types of international business this firm  is likely to set up in the short term and long  term.  Give reasons for your  choices. c. What  does  the term  globalisation  means in relation to  this  business? 1. a) Incontinence is the problem where the patient has a problem in controlling the emptying o f the urinary bladder. It becomes an involuntary action where the patient complains of urine leakage (Minassian, Drutz & Al-Badr, 2003, p.1). There are many physical as well as psychological problems that can lead to it. Urinary incontinence occurs globally in huge numbers mainly affecting the female population. In a report it was found that UI was common in the white female population than in the black (Minassian, Drutz & Al-Badr, 2003, p.331). Apart from the European and the African continent, it is also prevalent in the Asian countries like India. A report in the newspaper The Hindu in India showed that a huge number of the people especially females suffered from the problem. More acute was the fact that these patients felt embarrassed to consult the doctor (Varma, 2012). It is here that the Australian company CI can establish its foothold. The company