Describe the Five Benefits for Companies of Expanding Internationally

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The Answer is The benefits include:
1.Availability of supplies.For years oil companies,for example,have expanded their activities outside the United States in seeking cheaper or more plentiful sources of oil.
2.New markets for old products.Sometimes a company will find,as cigarette makers have,that the demand for their product has declined domestically but that they can still make money overseas.
3.Lower labor costs.For example,the rationale for using maquiladoras,manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens,is that they provide less expensive labor for assembling everything from appliances to cars.
4.Access to financial capital.For example,Woody Allen's 2013 film Blue Jasmine,in which Cate Blanchett plays a woman whose husband is revealed to be a Bernie Madoff-like con man,received most of its financing from overseas investors,as do many other American movies.
5.Avoidance of trade barriers.For example,Japan imposes tariffs on agricultural products,such as rice,imported from the United States.To avoid these penalties,a company might create a subsidiary to produce the product in the foreign country.

Describe the Five Benefits for Companies of Expanding Internationally

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Describe the Five Benefits for Companies of Expanding Internationally

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