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So that they can make more money.

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15y ago

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Why and How Firms Internationalize?

expand sales and increase profit


Why firms do not want to expand internatiOnally?

economic and political risks


When discussing pure competition the term long run refers to a period of time long enough to allow?

Firms already in an industry to either expand or contract their capacities and new firms to enter or existing firms to leave.


In the world of zero transportation cost no trade barriers and significant differences between nations and amp with regards to factor conditions firms must expand internationally if they are to surviv?

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.


What is the motivation for international expansion of firms within each category?

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.

Related Questions

Why and How Firms Internationalize?

expand sales and increase profit


Which of the following statements is NOT true about information technology's impacts on business firms?

elps firms expand in size


Why firms do not want to expand internatiOnally?

economic and political risks


Why don't small firms grow bigger?

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.


When discussing pure competition the term long run refers to a period of time long enough to allow?

Firms already in an industry to either expand or contract their capacities and new firms to enter or existing firms to leave.


Why would economists be happy to see firms begin to buy capital goods?

it would indicate that they intentde to expand production and hire new workers.


Why would economists be happy to see firms begin to buy more capital goods?

it would indicate that they intentde to expand production and hire new workers.


What are the goals of the firm?

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.


Why is a firm so obsessed with the pricing elements of the marketing mix?

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.


How many firms are traded on the FTSE?

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.


Suppose the nation were in a recession with many people unemployed why would economists be happy to see firms begin to buy more capital goods?

it would indicate that they intented to expand production and hire new workers


Are profitable firms necessarily efficient firms?

yes