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Probably the most common reason that firms expand into other countries has to do with the costs of doing business. For example, it is well known that many firms today are operating in China. The reason for this relates to the cost and ready availability of labor in that country. A US manufacturer may experience cost savings of 20 to 30% on an after-tax basis by offshoring its manufacturing to China, though this will normalize over time. Another very important reason is to take advantage of what are referred to as transfer pricing relationships, whereby firms shift their taxes to countries with favorable rates; smart managers will accomplish both of these goals with one transaction. Other reasons relate to expanding into growing countries and increasing sales, locating closer to international customers and reducing logistics costs, locating closer to sources of materials, etc.
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Why do firms purchase other corporations when they have a loss tot he acquiring firms stockholders?
Firms may purchase other corporations, even if they themselves have losses because they believe the new firm may have products or processes which will generate new income streams. Some firms are making losses, but they have high financial net-worth.
Why do firms purchase of other corporations Are they simply paying too much for the acquired corporation?
Some firms might purchase other corporations in the hopes of making a profit. They might buy cheap and sell higher. Some firms might also buy other corporations to buy up the competition in a particular industry.
Why would a company want to expand abroad?
Due to governmental regulations, labor costs and taxes here in our country, it is often cheaper to manufacture items in other countries and then ship them back to the US to sell. If you are talking about business in general, many times it is simply an opportunity to expand their client base.
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.
Firms that successfully increase their rates of inventory turnover will among other things?
all of the above
Why do firms expand?
So that they can make more money.
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
What are some good software development firms?
There are many software development firms in the US and other countries. For a good list, go to sourcelisting on the internet. They provide information on over 50 different firms.
Addresses to cmpanies looking to expand franchising to other countries?
Each company that is looking to expand franchising to other countries has a different address. The best way to find out the address and if they are interested in expanding is to call the company headquarters.
Why did America want to expand over seas?
For power, like all other countries
Why would a country want to expand its power to other countries?
To get more land and gold to rule.
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.
Why did the Romans travel?
Well ancient romens travelled to conquer other provences and empires (countries), for riches and trade and to expand the empires (countries).
Why do countries expand?
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How were Japans actions before and during World War 2 similar to Germany's actions over the same period?
Both countries invaded neighboring countries to expand their territory and influence
