I am having a hard time explaining why so many companies are choosing to expand internationally? Also, are there advantages of expanding beyond the domestic market? Please explain. Thank you!
Why are so many companies choosing to expand internationally? Are there advantages of expanding beyond the domestic market?
The main reason is that those companies get to save more. Many countries overseas are encountering economic disadvantages that can benefit from an outside company's job making potentials. When this occurs, both parties benefit: the US Company gets to spend much less to keep the company operating in a country where the American dollar is worth much more than the local currency; and the overseas company gets to increase its economic potential by increasing its workforce. Therefore, by expanding beyond the domestic markets, companies are able to promote their brands internationally, spend less on marketing efforts, spend less on production, and spend less on paying ...
This solution helps the student understand why many companies choose to expand overseas.