What are the motivations that are most likely to lead to companies going global with their products and services? (Check all that apply.)Multiple select question.Low production capacityUnique market chanceTechnological superiorityIncreasing home country salesTax benefitsProfits
Question
What are the motivations that are most likely to lead to companies going global with their products and services? (Check all that apply.)Multiple select question.Low production capacityUnique market chanceTechnological superiorityIncreasing home country salesTax benefitsProfits
Solution
The motivations that are most likely to lead to companies going global with their products and services include:
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Unique market chance: Companies may identify a gap in the market in a foreign country that their product or service can fill. This could be due to a lack of competition, or a unique need or want in that country that is not being met by local businesses.
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Technological superiority: If a company has a technological advantage over its competitors, it may choose to expand globally to take advantage of this. This could be a unique product, a more efficient manufacturing process, or superior supply chain management.
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Tax benefits: Some countries offer tax incentives to foreign companies in order to attract investment. These can significantly reduce the cost of doing business, making it more profitable for companies to expand into these countries.
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Profits: Ultimately, the main motivation for any business decision is to increase profits. If a company believes that it can make more money by selling its products or services in a foreign country, then it is likely to expand globally.
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