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what arethe risk of outsourcing

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Vergie Moen

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3y ago

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Why firms may issue shares in foreign markets?

ANSWER: Firms may issue stock in foreign markets when they are concerned that their home market may be unable to absorb the entire issue. In addition, these firms may have foreign currency inflows in the foreign country that can be used to pay dividends on foreign-issued stock. They may also desire to enhance their global image. Since the euro can be used in several countries, firms may need a large amount of euros if they are expanding across Europe.


Why firms become MNE?

Firms become multinational enterprises (MNEs) to access new markets, diversify their operations, and optimize costs. By expanding internationally, they can tap into local resources, benefit from economies of scale, and enhance their competitive advantage. Additionally, entering foreign markets allows firms to mitigate risks associated with economic fluctuations in their home countries and to capitalize on growth opportunities in emerging markets. Overall, becoming an MNE enables firms to achieve greater innovation and profitability.


What outlets do firms have to sell their output?

business markets and consumer markets


What are some of factors that encourage firms to adopt their product for foreign market?

Firms are encouraged to adopt their products for foreign markets due to factors such as the potential for increased revenue and market diversification, which can reduce reliance on domestic sales. Additionally, access to new customer bases and the opportunity to leverage competitive advantages, like unique technologies or brand reputation, can drive international expansion. Market demand and favorable trade agreements can also play significant roles in prompting firms to enter foreign markets. Lastly, the desire to mitigate risks associated with economic fluctuations in their home country can motivate firms to seek growth opportunities abroad.


What are US firms at the forefront of in economic markets?

US firms are at the forefront of technological advances.

Related Questions

Why is outsourcing such an attractive way for firms to tap into foreign markets?

what arethe risk of outsourcing


Why firms may issue shares in foreign markets?

ANSWER: Firms may issue stock in foreign markets when they are concerned that their home market may be unable to absorb the entire issue. In addition, these firms may have foreign currency inflows in the foreign country that can be used to pay dividends on foreign-issued stock. They may also desire to enhance their global image. Since the euro can be used in several countries, firms may need a large amount of euros if they are expanding across Europe.


When considering outsourcing what should firms be sure to avoid?

giving the outsourcing partner the opportunity to become a stong competitor


Why firms become MNE?

Firms become multinational enterprises (MNEs) to access new markets, diversify their operations, and optimize costs. By expanding internationally, they can tap into local resources, benefit from economies of scale, and enhance their competitive advantage. Additionally, entering foreign markets allows firms to mitigate risks associated with economic fluctuations in their home countries and to capitalize on growth opportunities in emerging markets. Overall, becoming an MNE enables firms to achieve greater innovation and profitability.


What outlets do firms have to sell their output?

business markets and consumer markets


What are some of factors that encourage firms to adopt their product for foreign market?

Firms are encouraged to adopt their products for foreign markets due to factors such as the potential for increased revenue and market diversification, which can reduce reliance on domestic sales. Additionally, access to new customer bases and the opportunity to leverage competitive advantages, like unique technologies or brand reputation, can drive international expansion. Market demand and favorable trade agreements can also play significant roles in prompting firms to enter foreign markets. Lastly, the desire to mitigate risks associated with economic fluctuations in their home country can motivate firms to seek growth opportunities abroad.


Where can I learn more about outsourcing financial services?

THere are only a few firms that handle outsourcing financial services. I would suggest talking too www.fsokx.com.


What does a company do when outsourcing?

When outsourcing, a company seeks to move internal operations to an external source. For instance, you might decide that instead of maintaining a payroll division in your human resources department, that you'd rather outsource to a payroll company. Outsourcing is done because you can often gain more expertise, and lower costs, by contracting to firms that specifically deal with particular business functions. Outsourcing is often confused with "offshoring," which is when a company moves a portion of its business functions overseas. Outsourcing may be foreign or domestic.


What are US firms at the forefront of in economic markets?

US firms are at the forefront of technological advances.


Giant tool corporation is a company that began operation in the US and has since expanded into foreign markets internation accounting practices for global firms requir them to?

The home depot


What are the 4 basic economic sectors?

Factor Markets, Households, Profuct markets, firms


How might domestic firms react if each state were to punish firms based on its own foreign policy ideals?

If each state were to punish firms based on its own foreign policy ideals, domestic firms might face significant uncertainty and operational challenges. They could adapt by diversifying their markets and supply chains to mitigate risks associated with punitive measures. Additionally, firms may lobby for more consistent national policies or seek to influence foreign policy to align with their business interests. Ultimately, this fragmentation could lead to increased compliance costs and hinder international trade relations.