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? (Discuss with one hundred and fifty words)
There are various benefits to setting operations abroad. Firstly, the companies get access to a whole new market which may have few or no competitors. Many of the countries especially the lesser developed ones invite foreign investments by offering them various incentives and tax subsidies. These countries are low cost production centres for the goods produced locally. Also the dollar is a more valuable currency due to which the costs are even lesser for companies. This increases the profitability of the company. Companies expanding internationally also get access to new talent and resources.
Moreover, the company is helping the country by generating employment in the less developed economy. It is bringing higher and advanced technology to their country and introducing them to high quality/new product/ service thus helping the development of this economy. It enables exchange of different cultures and by diversifying globally, the company gains immense goodwill and hedges its exposure against losses in the domestic market.
You were invited to speak about international business in your favorite nephew's high school advanced placement...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...