Asked by Alanna Cooperman on May 12, 2024
Verified
When and why do many American firms begin their global expansion efforts by exporting?
Global Expansion
The process by which a company extends its business operations and market presence to multiple countries across the world.
Exporting
The process of selling goods or services produced in one country to buyers in other countries.
- Distinguish and characterize various strategies for entering global markets to expand international business operations.
Verified Answer
SG
Sharice GreenMay 19, 2024
Final Answer :
Many American firms begin global expansion when they get an order from a customer in another country. The U.S. market has usually been big enough that U.S. firms spend all their efforts on domestic demand. The second reason why firms begin by exporting is because it is less risky than other global expansion alternatives.
Learning Objectives
- Distinguish and characterize various strategies for entering global markets to expand international business operations.