Reference no: EM133661641

Problem: Are customer needs abroad similar to those in the firm's domestic market? If so, the firm may be able to develop economies of scale by producing a higher volume of the same goods or services for both markets. Are differences in transportation and other costs abroad favorable and conducive to producing goods and services abroad? Are these differences favorable and conducive to exporting or importing goods from one country to another? Are the firm's customers or partners already involved in global business? If so, the firm may need to become equally involved. Will distributing goods and services abroad be difficult? If competitors already control distribution channels in another country, expansion into that country will be difficult. Will government trade policies facilitate or hinder global expansion? For example, the North American Free Trade Agreement (NAFTA) facilitates trade among firms in the United States, Canada, and Mexico. Similar trading blocks, such as the European Economic Union (EEU), occur in other parts of the world. Will managers in one country be able to learn from managers in other countries? If so, global expansion may improve efficiency and effectiveness, both abroad and in the host country.