By making use of international strategies, companies would be able to have some significant outcomes. For instance, the international diversification form of strategy enables the company to have better movement of goods and services. It enables it to have better returned, and the company also is able to acquire better knowledge in internationalization with respect to different consumer segments when they diversify. When international diversification increases, the profits of the company also increase after a slow period of decline which is the learning curve. The learning curve however brings intangible learning benefits for the organization which the company can make use of to introduced newer products across newer geography.
Corporate governance is a set of rules followed by the company that is aligned with the moral legal and ethical responsibilities of the company. Governance is needed to manage manager’s decisions as their decisions will have a direct impact on the wellbeing of the company and of direct implication to all stakeholders. The breach of financial responsibility has been discussed much in the media and research. Accountability is one area that often finds its way in discussions on corporate governance. A separation of ownership and managerial control is required in the organization in order to ensure that there is conflict of interests. Ownership could result in ethical issues of mismanagement to suit the person, rather than the organization.
Interests of one person like a corporation owner being represented by another competent person and like a manager is called the agency relationship. The manager is the agent of the owner. When a manager makes use of some employment information in order to have some personal gain then it is called managerial opportunism. Owners of a corporation, assume that the manager has the needed talent to run the company. They believe that the managers represent the best of their interests and hence they entrust the manager with their work responsibility.