Week 7 - What incentives influence firms to use international

Week 7 Short Answer

1. What incentives influence firms to use international strategies? What three basic benefits can firms gain by successfully implementing an international strategy? Why?
2. Determine why, given the advantages of international diversification, some firms choose not to expand internationally. Provide specific examples to support your response.
3. As firms attempt to internationalize, they may be tempted to locate facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response.