Global management short questions

User Generated

ivivnavpvr

Business Finance

Description

Just need to answer the questions. Please check below attached for more details.

  • You are provided with six (6) essay questions.
  • You are required to answer three (3) of the provided questions.

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Explanation & Answer

Attached.

Running head: GLOBAL MANAGEMENT
Name:

ULV ID #:

1
Date:

Question 1
a) Reasons that provide motivation for companies’ international expansion and their
description
• Growth and profitability
Introduction of a company’s product into the international market broadens the customer base,
thus increasing the sales volume and profits.
• Economics of scale
This is achieved as a result of size expansion and market scope. The main advantage
associated with this is the reduction in the unit cost as the production volume increases.
• Diversification of risk
Distributing the products over various countries reduces the exposure of a company to
economic crisis and political instability in a particular country.
• Ideas and resources
Unavailability or inadequate resources in the home country may push a country to seek
opportunities internationally. Also, the need for better ideas in various countries may boost
and broaden their workforce.
• Employees
Due to the low skilled population in various countries, a company may choose to expand and
establish branches in various parts of the world.
b) Are the motivations geared towards market and resource seeking competitive
positioning, or global scanning/leaning?
• Market and resources
The co...


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