So that they can make more money.
expand sales and increase profit
economic and political risks
Firms already in an industry to either expand or contract their capacities and new firms to enter or existing firms to leave.
In a world with zero transportation costs and no trade barriers, firms must expand internationally to leverage significant differences in factor conditions across nations. This allows them to access cheaper labor, unique resources, and diverse markets, enhancing competitiveness and profitability. Without such expansion, firms risk stagnation or obsolescence as global competition intensifies. Ultimately, international growth becomes essential for survival and success in a rapidly evolving global landscape.
Firms expand internationally for various reasons, typically categorized as market-seeking, resource-seeking, efficiency-seeking, and strategic asset-seeking motivations. Market-seeking firms aim to access new customer bases and increase sales, while resource-seeking firms look for essential inputs like raw materials or labor. Efficiency-seeking firms pursue cost reductions through economies of scale or lower operational costs, and strategic asset-seeking firms seek to acquire valuable capabilities, technologies, or brands that enhance their competitive advantage. Each category reflects a distinct strategic goal that drives firms to explore opportunities beyond their domestic markets.
expand sales and increase profit
elps firms expand in size
economic and political risks
A lack of resources to expand is usually the answer. Small firms must keep their prices small to compete with the bigger firms and in that price it does not include the money needed for expantion.
Firms already in an industry to either expand or contract their capacities and new firms to enter or existing firms to leave.
it would indicate that they intentde to expand production and hire new workers.
it would indicate that they intentde to expand production and hire new workers.
To maximize profit.To have low costs.To have profit in the short run and business value in the long run.To get a social function (some firms only).To grow/expand as a firm.
Firms focus on price because they have to generate a profit. With the right product, price and promotion the firm can expand their market share.
There are approximately 1700 firms traded on the FTSE. The number of firms traded changes daily. New firms are added as some firms drop off the exchange.
it would indicate that they intented to expand production and hire new workers
yes