1. Why companies engage in international business?
There are three major operating objectives that underline the reasons for companies to engage in international business:
-expanding sales: pursuing international sales usually increases the potential market and potential profits
-acquiring resources: foreign sources may give companies lower costs, new or better products, additional operating knowledge
-minimizing risk: international operations may reduce operating risk by smoothing sales and profits, preventing competitors from gaining advantages.
2. Identify three of the drivers of globalisation. Justify your selection supporting your argument with the use of examples.
3. Which …show more content…
MNEs have only a very limited ability to overcome host country protectionism. However, MNEs do enthusiastically sup- port efforts to reduce protectionism by joining together in regional markets. The best examples of regional markets are the European Union (EU), the North American Free Trade Association (NAFTA), and the Latin American Free Trade Association (MERCOSUR). Among the objectives of regional markets are elimination of internal trade