What is a reason a business may choose to move its business overseas?

Answer 1

Expanding a business internationally offers many benefits when done properly. First of all, businesses and organizations that initiate global expansion often do so to gain a first-mover advantage. The move allows them to leave a saturated domestic market and find new customers in developing markets.

Moreover, entering new markets gives businesses greater visibility. This allows their company to build strong brand awareness and a connection with local consumers. Even when their domestic competitors do enter the market, they have the advantage of having a more recognizable brand name.

Also global expansions and a diversified market presence offer the company a way to mitigate long-term risks from the effects of a fluctuating local and global market.

Triumphantly entering new markets overseas allows companies to decrease their dependency on their local market. Instead of feeling the brunt of one market’s highs and lows, companies can use the profitable operations of one market to offset the negative performance of another.

Another reason why companies go global is so that they can take advantage of foreign markets to introduce unique products and services based on local palates. A poorly performing product in domestic markets may also be offset by introducing it in Another Country where customer preferences indicate a better reception.

Answer 2

The main reason businesses move overseas is money. The business can often hire cheaper workers and deal with less restrictive laws.