what are the advantages and disadvantages of international expansion?
68963
['Cost of establishing and termination of an entity. Whether you are planning a long-term expansion, or just testing a market you need to prepare and factor in both setting up and shutting down costs. ... ', 'Compliance risk. ... ', 'Business practices and cultural barriers. ... ', 'Managing international employees – HR and payroll obligations.']
715733
['International company structure.', 'Foreign laws and regulations.', 'International accounting.', 'Cost calculation and global pricing strategy.', 'Universal payment methods.', 'Currency rates.', 'Choosing the right global shipment methods.', 'Communication difficulties and cultural differences.']
839734
['Labor Productivity.', 'Exchange rates and currency risk.', 'Costs.', 'Political risk, values, and culture.', 'Proximity to marketers.', 'Proximity to suppliers.', 'Proximity to competitors (clustering)']
319059
Globalization Benefits World Economies Some of the benefits of globalization include: Foreign Direct Investment: Foreign direct investment (FDI) tends to increase at a much greater rate than the growth in world trade, helping boost technology transfer, industrial restructuring, and the growth of global companies.
545132
['Exporting: Exporting is often the first choice when manufacturers decide to expand abroad. ... ', "Licensing: Licensing is another way to expand one's operations internationally. ... ", 'Franchising: ADVERTISEMENTS: ... ', 'Foreign Direct Investment (FDI):']
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['Greater trade in goods and services both between nations and within regions.', 'An increase in transfers of capital including the expansion of foreign direct investment (FDI) by trans-national companies (TNCs) and the rising influence of sovereign wealth funds.']
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['Advantage: Increased Competition. In the business world, competition is a good thing. ... ', 'Advantage: Immunity From Political Influence. ... ', 'Advantage: Tax Reductions and Job Creation. ... ', 'Disadvantage: Less Transparency. ... ', 'Disadvantage: Inflexibility. ... ', 'Disadvantage: Higher Costs to Consumers. ... ', 'Privatization Pros and Cons at a Glance.']
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One of the significant advantages of international trade is market diversification. Focusing only on the domestic market may expose you to increased risk from downturns in the economy, political factors, environmental events and other risk factors.
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['Advantage: Cheap manpower. ... ', 'Advantage: Scalability. ... ', 'Advantage: Access to raw materials. ... ', 'Advantage: Access to distinctive skills. ... ', 'Advantage: Increase in productivity. ... ', 'Disadvantage: Quality problems.']
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Provides a Competitive Advantage If you're able to tap into an international market that your competitors aren't servicing, you can gain a competitive advantage by providing the products and services that consumers are demanding. ... Expanding overseas also helps to extend the life cycle of your products and services.
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The advantages that they provide includes the increasing numbers in a nation's employment, their education. By incorporating a company branch in a country, MNCs also increase the investment in the country which in return increase the development of industry in the country and the capital for the host country.
804860
['Economies of scale. ... ', 'Product differentiation. ... ', 'Capital requirements. ... ', 'Switching costs. ... ', 'Access to distribution channels. ... ', 'Cost disadvantages independent of scale. ... ', 'Government policy. ... ', "Read next: Industry competition and threat of substitutes: Porter's five forces."]
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["Increased efficiency. The good thing about a free trade area is that it encourages competition, which consequently increases a country's efficiency, in order to be on par with its competitors. ... ", 'Specialization of countries. ... ', 'No monopoly. ... ', 'Lowered prices. ... ', 'Increased variety.']
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['Specialization of Resource Allocation. ... ', 'Manufacturing Growth. ... ', 'Economic Dependence of Underdeveloped Countries. ... ', 'Competitive Pricing Leads to Stabilization. ... ', 'Distribution and Telecommunications Innovation. ... ', 'Extending Product Life Cycles. ... ', 'Import of Harmful Products and Unfair Trade Practices.']
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['Lack of "economies of scale" (these are lower unit costs that arise from operating at high production volumes)', 'Risk of over dependence on a single product or market.', 'Likely to attract competition if successful.', 'Vulnerable to market changes – all "eggs in one basket"']
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Some of the benefits of international finance are: Access to capital markets across the world enables a country to borrow during tough times and lend during good times. It promotes domestic investment and growth through capital import. Worldwide cash flows can exert a corrective force against bad government policies.
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An advantage is that American workers can be paid higher wages for the work they do which is also more specialized. A disadvantage of that at the same time is that they get less jobs in the end as its cheaper to employ workers overseas in China.