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Overseas Operations

You were invited to speak about international business in your favorite nephew's high school advanced placement class. You just summarized the above information, when one of the students asks you earnestly, "Why do companies bother to set up operations overseas. They lose as often as they win. The U.S. should be a large enough market for them?" What do you say to this group of idealistic, environmentally conscious, intelligent teenagers?

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The US may be a big market but there are many reasons why businesses venture internationally. One of them is to increase sales and to find new markets. The recent advances in technology brought about by computerization and the Internet has made international business easier compared to previous years. There will be a wider coverage and vast opportunities await these companies who try to expand internationally.

Another reason is that they can acquire new resources from other markets in the global economy. These extra resources can be used by the business to ...

Solution Summary

419 words; 1 reference; reasons why companies venture for international market