Question

Describe the benefits of global expansion for firms

250 words

Answer 1

Global expansion is said to be as diverting operations into a new, overseas market or tapping of the international market. Global increases a business's exposure, helping to create a global footprint. This can lead to greater brand recognition across the globe. There are numerous benefits of global expansion for firms :

1) Entry to new markets:

The first advantage of global expansion is access to new untapped markets. With access to new markets, a business has the potential in order to build a new customer base. In addition, international expansion will enable businesses with access to more untapped and raw markets.

2)Access to local talent:

When you expand a business you need people to work for it. Local talent will help in setting business as cultural differences can be easily absorbed by hiring local talent. expanding abroad gives an organization an opportunity to access a pool of potential workers with unique skill sets.

3) Increased business growth:

Global expansion means engineered business growth. Entering the overseas markets means diversification of business which allows for faster growth for businesses. Diversification is always beneficial for a firm that allows efficient and full utilization of resources which automatically thrust business towards increased business growth.

4)Stay ahead of the competition

Expanding overseas authorize your access to new customer base and visibility that your competitors might not have. Expanding globally beneficial to get out of the saturated market and remain a step ahead of the competition.

5)Regional centers

By expanding into international borders a business will be able to minimize its operational costs. The hiring of local workers who know the local language and local customs helps to serve better your customers within the same time zone without any complications. Setting up regional centers helps to reach a wider audience base.