(1)INTRODUCTION

When doing business in an international scale, it is important to understand what international business really means. Therefore according to Rugman & Collinson (2012) international business can be defined as “The study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations. Some of the well known International businesses (MNE’s) are Wal-Mart, Toyota Motors, General Motors and Volkswagen for their performance, moreover annual revenue.
Decisions with regard to movement in to global arena should be taken with care as there is certain degree of risk involved.
 There should be value in moving to different markets (eg- An organization may lack the skills needed to make use of the potential-Integrate R&D activities or incompatible cultures
 The cost of managing complex infrastructure should not –outweigh the benefits of increased scale
 Some industries posses’ particular globalization challenges for example companies operating in the manufacturing sector (automobile makers) often faces complexities in integration and particularly vulnerable to economic slowdowns which reduces their ability to expand. (Alexander & Korine, 2008)

According to Wall & Rees (2004) the factors to be considered when investing abroad can be classified in to four areas-Supply factors, demand factors, Political factors and others.
Under supply factors, production costs, Distribution costs and access to key technologies are key considerations. When it comes to production costs foreign locations may be more attractive due to lower costs of skilled or unskilled labor, lower land prices, and tax rates. Furthermore some locations are popular as low cot centers of production.
A major factor in distribution is the transportation cost and therefore when moving global the distribution centers will have to