Global Business Challenges
There are varieties of reasons why companies decide to engage in international trade transactions or invest in foreign economies. In this assignment, you will draft a report on the advantages and disadvantages of engaging in international operations.In your report, discuss the following:
- How do firms confront different social, cultural, demographic, environmental, political, governmental, legal, and competitive forces when doing business internationally?
Engaging in international trade and investing in foreign economies can offer businesses significant opportunities, but it also exposes them to various challenges. Companies must navigate a complex environment shaped by social, cultural, demographic, environmental, political, governmental, legal, and competitive forces when conducting business internationally. This report explores both the advantages and disadvantages of international operations and discusses how firms confront these diverse forces.
Advantages of International Operations
- Market Expansion
- Description: International expansion provides businesses with access to larger and more diverse markets.
- Benefit: Companies can increase sales, diversify their revenue streams, and mitigate risks associated with overreliance on a single market.
- Access to New Resources
- Description: Businesses can tap into resources that are not readily available in their domestic markets.
Engaging in international trade and investing in foreign economies can offer businesses significant opportunities, but it also exposes them to various challenges. Companies must navigate a complex environment shaped by social, cultural, demographic, environmental, political, governmental, legal, and competitive forces when conducting business internationally. This report explores both the advantages and disadvantages of international operations and discusses how firms confront these diverse forces.
Advantages of International Operations
- Market Expansion
- Description: International expansion provides businesses with access to larger and more diverse markets.
- Benefit: Companies can increase sales, diversify their revenue streams, and mitigate risks associated with overreliance on a single market.
- Access to New Resources
- Description: Businesses can tap into resources that are not readily available in their domestic markets.
