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Diversification of trade offers several advantages, including reduced risk, as it minimizes dependence on a single market or product, thereby cushioning against economic downturns. It also allows businesses to tap into new markets and customer segments, potentially increasing revenue streams. Additionally, diversification can enhance competitiveness by fostering innovation and improving resilience against market fluctuations. Overall, it promotes sustainable growth and stability in a dynamic global economy.
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What are the Advantages and disadvantages of conglomerate diversification?
The advantages and disadvantages of conglomerate diversification are as follows: Advantages of conglomerate diversification a. Risk spreading ? entering new products into new markets offers protection against failure of current products and markets. b. High profit opportunities ? Ability to move into high growth profitable industries especially important if current industry is in decline. c. Escape ? from the present business if competition is too hot! d. Better access to capital markets. Disadvantages of conglomerate diversification a. The dilution of shareholders earnings if diversification is into growth industries with high P/E ratios. b. Lack of a common identity and purpose in a conglomerate organization. A conglomerate will be successful only if it has high quality of management and financial ability at head office where diverse operations are brought together. c. Failure in one business will drag down the rest. d. Lack of management experience..
When is a company likely to choose related diversification and unrelated diversification?
Hell to the prof
What is agricultural diversification?
Agriculture diversification refer to the policy of a country to change the production of one major crop
What is difference between vertical integration and diversification?
Diversification is when someone's tight clit is sniffed and integration is when the clit is jizzed on
The difference between concentric diversification and conglomerate diversification?
Concentric diversification occurs when a firm adds related products or markets. The goal of such diversification is to achieve strategic fit. Strategic fit allows an organization to achieve synergy. In essence, synergy is the ability of two or more parts of an organization to achieve greater total effectiveness together than would be experienced if the efforts of the independent parts were summed. Conglomerate diversification occurs when a firm diversifies into areas that are unrelated to its current line of business. Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is improved profitability of the acquiring firm. Little, if any, concern is given to achieving marketing or production synergy with conglomerate diversification.
When did Nepal start trade diversification?
5 years plan Nepal adopted trade diversification
What are the advantages of diversification?
to maximize the profit
Advantages and disadvantages of diversification?
advantages 1. more money 2.more jobs 3.tourism disadvantages 1.no local support 2.misuse of funds 3.imbalance of trade
What are Advantages and disadvantages of conglomerate merger?
disadvantages- unlikely economic benefits will be generated for the target or the bidder advantages- diversification
What is the advantages and disadvantages of foreign trade multiplier?
advantages of foreign trade multiplier
What has the author Charlene Henderson-Brewster written?
Charlene Henderson-Brewster has written: 'Diversification of the Caribbean banana industry' -- subject(s): Agricultural diversification, Banana trade, Banana products
What footlockers mission statement?
Foot Locker Vision Statement: "Global diversification is a vital component of the Company's strategic positioning. This diversification is unique in the athletic footwear and apparel industry and provides many distinct advantages."
What is Footlockers vision statement?
Foot Locker Vision Statement:"Global diversification is a vital component of the Company's strategic positioning. This diversification is unique in the athletic footwear and apparel industry and provides many distinct advantages."
What is footlockers companys mission?
Foot Locker Vision Statement:"Global diversification is a vital component of the Company's strategic positioning. This diversification is unique in the athletic footwear and apparel industry and provides many distinct advantages."
How should bill demonstrate the meaning and advantages of diversification to Mary?
Naughty M.Com student, you should refer to the textbook..... MA
What are the advantages of diversification strategies?
There are two main reasons to diversify: # diversification may benefit the firm's owners through increasing the efficiency of the firm # diversification decisions may reflect the preferences of the firm's managers Shareholder motivation for diversification: * econonomies of scale and scope * to gain synergies * to make use of internal capital markets * to diversify shareholder portfolios * to economise on transaction costs * identifying undervalued firms * when there is excess capacity * internal labour market * brand extension Management Motives: * pecuniary advantages * non-pecuniary (such as ego, social standing etc)
What are the benefits of trade diversification?
Trade diversification offers several benefits, including reduced economic risk, as it minimizes dependence on a single market or product. By engaging in a variety of trade relationships, countries can better withstand economic shocks and fluctuations in demand. Additionally, diversification can enhance competitive advantage, as it allows businesses to tap into new markets and innovate, ultimately leading to increased growth opportunities. Furthermore, it fosters stronger international relationships and can lead to more stable and sustainable economic development.
