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.

Listen to the session audio: