Why firms' established over sea operation?

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Elizabeth R


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November 9, 2014








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Acquiring resources ~ by acquiring raw material abroad, it will enable a company to improve its product quality. Exxon drills for oil in Asia and the Middle East. 5. Gaining an advantage over competitors ~ companies enter into international business because they want to counter advantages competitors might gain in foreign markets that, in turn, could hurt them domestically...
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Capitalize on the Leverage ~ doing business overseas can be cheaper than doing business domestically. This is because a foreign marketer merely jumps into sales without any research and development costs. 7. Liberalization of Government Policies ~ in the past decade, many countries have opened their door to welcome foreign investment by liberalizing most of their foreign policies...
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