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.