Identify and Explain two reasons why company X might want to enter new markets.

Reason 1 - Company X may want to enter new markets as it could generate more profits for the business.Explanation 1 - Entering new markets provides many benefits to multinational corporations, it allows them to expand their business and branch out into new, untapped places where they can sell their goods. Going into a new market allows company X to generate an extra revenue source as well as utilize the resources available in the other country, which could potentially be cheaper, reducing costs and in turn also increases profits.Reason 2 - Company X could utilize the cheaper and potentially higher skilled workers in the new country.Explanation 2 - If company X decided to expand into a country such as China where the workforce is cheaper, it would save reduce the business' cost of production drastically. Additionally, it may be easier to find more skilled individuals as there'll be a wider variety of workers to chose from, which will improve the company's efficiency, whilst promoting innovation and growth.

FH
Answered by Francis H. Business Studies tutor

6095 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

What are some of the most relevant pricing strategies?


Explain how a company selling a new brand of milk chocolate bar may benefit from using a penetration pricing strategy. (4 marks)


Could you explain to me the advantages and disadvantages of crowd funding to a business as a long term source of finance


Explain the term span of control.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences