Causing many businesses to avoid the operation abroad. However, the factors that cause a great business in the global market are as follows:
1. Expanding market share (Market Share)
2. The advantages in cost per unit (Economies of Scale)
3. Increased profits (Profit Advantage)
4. The tax advantages (Tax Advantage)
5. Other. the
most important aspect of the business is to increase its market share. It is what makes the business more stable. The extension of the internal market, the restrictions on the number of consumers. When extended to the global market, with more consumers will be the cornerstone for the stability of the business. The expansion into the global market place. Sales volume increased many times will inevitably lead to a reduction in unit costs, especially industrial production and products that require high cost of research. When the cost per unit volume and reach more consumers will inevitably affect the profitability increases. Obvious examples are the automotive industry. In the past, the Japanese car was named quality but cheap. Result of car sales in Japan was made to capture more market share. And has spread to every continent in the world market. The costs of providing cutting-edge technology into their products at low prices. It is now Japan's car can be durable at not too high. Moreover, in some countries, the government also offers tax for export. Makes out into foreign markets can increase profits significantly. Motivation is one of the manufacturers sought abroad.
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