Question

In: Economics

Explain how firms can increase revenue and profit by expanding globally. Identify the different international strategies...

  • Explain how firms can increase revenue and profit by expanding globally.
  • Identify the different international strategies for competing and their pros and cons.
  • Explain the pros and cons of using strategic alliances to support international strategies.
  • Compare and contrast the different modes that firms use to enter foreign markets.
  • Identify the factors that influence a firm’s choice of entry mode.
  • Recognize the pros and cons of acquisitions versus greenfield ventures as an entry strategy.  
  • Explain the promises and risks associated with exporting.
  • Explain the basic steps involved in export financing.
  • Identify information sources and government programs that exist to help exporters.

Solutions

Expert Solution

Question : Explain how firms can increase revenue and profit by expanding globally.

Through globalization firms can expand globally. When the goods and services of a firm moves from its domestic country to other countries then the firm can be considered to be expanded globally. Thus when firms are expanded globally they can increase their revenue and rate of profit. The firms that are operating globally have following benefits,

  • They are able to sell their domestic products in international markets and thus can expand their market globally. This will help to increase the growth rate of the firm as it sells products produced at domestic country at both domestic and international market. It will help the firm to reach more customers and there by increasing the sale.
  • They will be having cost advantages as a result of large scale production. Thus they can have economies of scale which will contribute to increase profits.
  • Valuable skills in foreign operations can be leveraged in order to warn greater returns to the firm.
  • There will be competitive advantage. When the opponent of a firm is not operating often in an expanded market, then the firm can take a first mover advantage that will help the firm to create a powerful and strong awareness among the customers in that market about the brand before the firm's opponent enter the market. This will have positive impact on the demand for firm's product and hence its sales and revenue will increase.

Related Solutions

A. Explain different strategies that mangers can use to increase their power relations with stakeholders. B....
A. Explain different strategies that mangers can use to increase their power relations with stakeholders. B. “Increasing returns promote self reinforcing sequences” Discuss this statement with reasons for phenomenon.
Identify the obstacles confronting MNEs from emerging economies interested in expanding overseas. How can such firms...
Identify the obstacles confronting MNEs from emerging economies interested in expanding overseas. How can such firms overcome them?
Identify the different types of strategies used in cost analysis/restaurant industry. Explain how these strategies add...
Identify the different types of strategies used in cost analysis/restaurant industry. Explain how these strategies add value to the decision making process for specific clientele base of business that purchase products or services.
How do organizations make decisions to pursue a global strategy? How can expanding globally become a...
How do organizations make decisions to pursue a global strategy? How can expanding globally become a threat to a multinational enterprises (MNEs) reputation? Explain with the help of a real-world example. What is meant by cultural distance? How does it affect a firm? Use a real-life example of a business affected by cultural difference. What are IKEA’s external and internal challenges? Which ones pose the greatest threat? Why? How would you address the challenges? What can IKEA do to continue...
Identify the competitive advantage strategies and explain why most firms pursue only one of these strategies.
Identify the competitive advantage strategies and explain why most firms pursue only one of these strategies.
Identify the main International Business Strategies.
Identify the main International Business Strategies.
Companies can achieve economies of scale by expanding into international markets because of production costs increase....
Companies can achieve economies of scale by expanding into international markets because of production costs increase. true or false
Large firms operating globally develop organizational strategies based on the type of industries and businesses in...
Large firms operating globally develop organizational strategies based on the type of industries and businesses in which they compete. Explain the four basic international business organization strategies discussed in the course and the Hill text. Then identify which of the four strategies your team company has used over time and the one it is now trying to implement. After identifying the strategies it has used and is now trying to implement please describe and explain how and why it is...
Large firms operating globally develop organizational strategies based on the type of industries and businesses in...
Large firms operating globally develop organizational strategies based on the type of industries and businesses in which they compete. Explain the four basic international business organization strategies discussed in the course and the Hill text. Then identify which of the four strategies Volkswagen has used over time and the one it is now trying to implement. After identifying the strategies it has used and is now trying to implement please describe and explain how and why it is pursuing the...
Large firms operating globally develop organizational strategies based on the type of industries and businesses in...
Large firms operating globally develop organizational strategies based on the type of industries and businesses in which they compete. Explain the four basic international business organization strategies discussed in the course and the Hill text. Then identify which of the four strategies Volkswagen has used over time and the one it is now trying to implement. After identifying the strategies it has used and is now trying to implement please describe and explain how and why it is pursuing the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT