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Potential Advantages of International Business Operations

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Discuss at least five potential advantages to initiating, continuing, and/or expanding international operations. Use atleast 200 words and cite any sources used in APA format.

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Short and Ketchen (2012) mentions three (3) potential advantages in dealing with international operations, namely:

1.) International operations give you access to new customers - this means that the product/services can be exposed to people of different cultures, hence there will always a demand for it;

2.) International operations lowers costs - many firms that compete in international markets hope to gain cost advantages. If a firm can increase it sales volume by entering a new country, for example, it may attain economies of scale that lower its production costs.

3.) International operations result to diversification of business risk - investors warn not to put all your eggs in one basket, ...

Solution Summary

This is a brief discussion on the advantages to initiating, continuing, and/or expanding international business operations. It gives a list of five major advantages of dealing with international operations. References used are included.

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