Most businesses face variety of threats as well as opportunities while seeking for expand to global market. Some of the threats and opportunities faced include;
Threats.
1. High rate of competition and difficulty in coping up with the undesirable competition in the foreign country.
2. High operation cost in foreign country
3. Oppression of business owners by the host countries
4. High taxation costs levied on foreign businesses.
5. High investment cost since expansion strategy demands for more financial injections which the may be a challenge for the business owners to raise.
Opportunities.
1. Availability of ready market for the company's product, thus making the expansion plan viable
2. Availability of cheap labour in the foreign country thereby minimizing the business expenses
3. Availability of cheap raw materials for production thus increasing the production output and minimizing the production cost.
4. High economic growth may be experienced in a foreign country thus provides a growth opportunity
5. Availability of skilled employees which are business assets.
6. The business is likely to benefit from economies of scale by selling more beyond the break even since it produces more at a cheaper cost with the available cheaper raw materials and labour.
Drezline answered the question on October 2, 2018 at 09:22
- Expound any eight considerations to observe when constructing a questionnaire(Solved)
Expound any eight considerations to observe when constructing a questionnaire
Date posted: August 2, 2018. Answers (1)
- Identify and explain any five research designs for scientific research (Solved)
Identify and explain any five research designs for scientific research
Date posted: August 2, 2018. Answers (1)
- Describe the characteristics of a good research problem(Solved)
Describe the characteristics of a good research problem
Date posted: August 2, 2018. Answers (1)
- Explain the advantages of division of labour in the production process(Solved)
Explain the advantages of division of labour in the production process.
Date posted: July 31, 2018. Answers (1)
- Explain five sources of public finance(Solved)
Explain five sources of public finance
Date posted: July 29, 2018. Answers (1)
- Give five distinguishing features between cooperative societies and partnership (Solved)
Give five distinguishing features between cooperative societies and partnership
Date posted: July 29, 2018. Answers (1)
- What are the advantages of small scale supermarkets?(Solved)
What are the advantages of small scale supermarkets?
Date posted: July 26, 2018. Answers (1)
- Name four benefits derived from division and specialization(Solved)
Name four benefits derived from division and specialization
Date posted: July 25, 2018. Answers (1)
- State four situations when the terms of trade for a country is favourable. (Solved)
State four situations when the terms of trade for a country is favourable.
Date posted: July 25, 2018. Answers (1)
- One benefit of growth and expansion is Economies of Scale. Explain what is meant by ‘‘Economies of Scale’’ and give one example how Economies of...(Solved)
One benefit of growth and expansion is Economies of Scale. Explain what is meant by ‘‘Economies of Scale’’ and give one example how Economies of Scale may occur
Date posted: July 23, 2018. Answers (1)
- Observation is the method of appraisal which is used in A Sporting Chance.
Describe this method and explain two of its advantages.(Solved)
Observation is the method of appraisal which is used in A Sporting Chance.
Describe this method and explain two of its advantages.
Date posted: July 23, 2018. Answers (1)
- State when the new Sales Manager must be given his/her Contract of Employment, and name four details which should be included in a Contract of...(Solved)
State when the new Sales Manager must be given his/her Contract of Employment, and name four details which should be included in a Contract of Employment.
Date posted: July 23, 2018. Answers (1)
- A Sporting Chance operates a system of both financial and non-financial motivation. Name, and describe one financial and one non-financial method of motivation which would...(Solved)
A Sporting Chance operates a system of both financial and non-financial motivation. Name, and describe one financial and one non-financial method of motivation which would be the most suitable for the new Sales Manager.
Date posted: July 23, 2018. Answers (1)
- Explain one advantage and one disadvantage for the employers of a Letter of Application.
(Solved)
Explain one advantage and one disadvantage for the employers of a Letter of Application.
Date posted: July 23, 2018. Answers (1)
- Explain one advantage and one disadvantage for internal recruitment(Solved)
Explain one advantage and one disadvantage for internal recruitment
Date posted: July 23, 2018. Answers (1)
- Explain the relationship between price and demand(Solved)
Explain the relationship between price and demand
Date posted: July 22, 2018. Answers (1)
- Analyse the impact of legislation in relation to products.(Solved)
Analyse the impact of legislation in relation to products.
Date posted: July 22, 2018. Answers (1)
- Discuss two responsibilities of the employer relating to Health and Safety(Solved)
Discuss two responsibilities of the employer relating to Health and Safety
Date posted: July 22, 2018. Answers (1)
- Explain two reasons why a business might want to gain a quality standard. (Solved)
Explain two reasons why a business might want to gain a quality standard.
Date posted: July 22, 2018. Answers (1)
- Define ‘‘quality assurance’’.
(Solved)
Define ‘‘quality assurance’’.
Date posted: July 22, 2018. Answers (1)