Explore BrainMass

Potential Advantages of International Business Operations

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.

© BrainMass Inc. brainmass.com August 21, 2018, 7:30 am ad1c9bdddf

Solution Preview

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.