How would international expansion affect your business?
What are the risks, advantages, and disadvantages to your business of international expansion? Do you think it is worth it?
Advantages:
Enables a country to gain comparative cost advantage. For instance, one country might specialize in production of wheat and other country in cotton, resulting in a lower per unit cost.Foreign direct investment (FDI) inXXXXXXX XXXXXXX XXXXXXXX XXXXXXXX and improve XXX XXXXXXX XX XXXXXXXX.XXXXXXX a country XX XXXXXX XXXXXXX XXXXXXXXX in XXXXXXXX XXX their XXXXX and services XXXXX facilitates XXXXXXXXXXXXXXX investment XXX XXXXXXXXXXX economic growth.XXXXXXX XXX of productive resources through international division of XXXXXX. XXXX XXXXXXXX national XXXXXX and XXXXXX and XXXXXXXXXXX savings.XXXXXXXXX distribution XX XXXXXX materials XX possible as some XXXXXXXXX XXX endowed XX specific natural resources such XX XXX in Arab XXXXXXXXX, Jute in Bangladesh and XXXX in African XXXXXXXXX.
Disadvantages:
XXXX XXX XXXXXXXXXXXX XX international currency, XXXXXX XX imports XXX XXXXXX comparatively XXXXXX as XXXXXXXX to the XXXXXX of XXXXXXX.XXXXXXXXX XXX unprotected industries XXXXXX because XXXXXXXXXX XX XXXXXX invariably XXXXX XX rising XXXXXX.XXXXX XXXX international XXXXX may XXX XX equitably XXXXXXXXXXX between developing XXX XXXXXXXXX XXXXXXXXX.XXXXXX XXXXXXXXXXX may arise XXX XX XXXXXXX, depreciation exchanges XXX bounties XXX.
XXXXX
XXX may place XXXXXXXXXXXX on the import of XXXXXXX XXXXXXXXXXX which may affect XXX XXXXXXXX XXXXXXXXX. i.e., XXX XXXXXX States XXXX XXXXXXXXXX XXXXXXXXX beef XXXX XXXXXXX XXXXXXX in XXXXXXXXX where disease had attacked cattle.Government interference with XXX buying XXX selling XX foreign exchange could curtail XXXXXXX trade and XXXXX it to selected XXXXXXXX.XXXXX arising as a XXXXXX of XXXXXXXXXXXX movement in exchange XXXXX.XXXXXX monopolies and other political XXXXXXXXXXXXXX limiting XXX terms of XXXXX.
Do you XXXXX it is worth it?
XXXXX the XXXXXXXXXXXX XXXXXXXXX is XX XXXXXXXXXXX XXXXXX and specifically XXXXXXXX for the United State XXXXXXXX, XXXXX are XXXXXXXXXXX risks of failure XXXXXXXXXX with XXXXXXXXX XXXX XXXXXXX country. The XXXXX XXXXXXX XXXXXX XXXXXXXXXXX, XXXXXX XXXXXXXXXX, difference consumer tastes etc. XXXXXXXXX, in this XXXX, it may XXX XX XXXXXXXXXX to XXXXXX internationally.
If you were the XXXXX of an XXXXXXXXXX company and XXXXXXX to market XXXXXXXXXXXXXXX, would you XXXX imperfect, monopolistic, oligopolistic, or XXXXXXX competition? XXXXXX XXXXXXX your XXXXXX.
XXX XXXXXXXXXX industry XX XXXXXXXXXX dominated XX XXX suppliers. XXXXXXXXX, an XXXXXXXXXX manufacturer is XXXX likely to face oligopolistic XXX/or imperfect XXXXXXXXXXX. XXXX XXXXXXXXXXX is supported XX the XXXX that XXXXXXX XXXXXXXXX XXX XXXXXXX XXXXXXXXXX XXXXXX from country to country. For instance, left XXXX drive cars are XXXXXXX XXXX in U.S whereas in other countries XXXXX XXXX XXXXX XXXXXXXX XXXXX XX used.
What sort of XXXXXXXXXXXXX XXXXX you XXXX to XX aware of, XXX XXX?
XXXXX XXXXXXXXXXXX of operating business XXXXXXXXXXXXXXX XXXXXXXXX XXXXXXXXXXXX property XXXXXX, employment law XXX other XXXXXXXXXXXX that govern XXXXXXX entities.XXXXXXXXXXX XXXXXXXXXXX, standards XX XXXXXXXXXXXXX and knowledge of XXXXXXXXXXXXX logistics XXXXXXXXXXX.Financial XXXXXXXXX XXX XXXXXXXX XXXX i.e., different XXXXXXXXXX reports are required for XXXXXXXXX countries XXX different XXX XXXXX XXX applicable.XXXXXXXX XXXX, XXXXXX XXX XXX XXXXXXX XXX XXXXXXXXXXXXX XX the XXXXX XXXXXX XXXX the XXXXXX market.XXXXX exchange control XXX XXXXX restriction XXXXXXX.
XXXX if you were a XXXXX XXXXXXXX in the United XXXXXX?
A XXXXX retailer XXXXX most XXXXXX XX XXXX perfect competition XXXXX substitutes are XXXXXXX available and XXXXX costs XXX comparatively lower. XXXXX in XXXX case, expanding XXXXXXXX XXXXX be XXXXXXXXXXX worthwhile XXX it is highly important XX XXXXXXXX XXX XXXXXXX XXX unit costs of producing XXX XXXXX XXXXXX XXXXXXX a perfectly XXXXXXXXXXX market XXXXXXXX significant XXXX XXXXXXXXXXX among XXX rivals.
References:
XXXXXXXXXX XXXXXXXXX in a global economy, XXXXXXXX SalvatoreInternational economics, XXXXXX CarbaughXXXXXXXXXX XXXXXXXXX, Ivan XXXModern XXXXXXXX XXXXXX, K. K XXXXXXSamuelson, P.A, XXXXXXXXXX.X XXXXXX, Economic principles in practice
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