M21-S3a - Session - Reasons for International Expansion
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- Economies of scale
- Economies of scope
- Low costs input factors
- Regulatory reasons
- Sales stabilization
- Income shifting
- Multi market competition
- Access to market knowledge
- Access to technology
Above all: Exploit a skill, intangible resource / capacity or at least temporary advantage
Bad reasons to expand are when the product is not doing well in the home country.
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