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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
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