126534952-Advantage-and-Disadvantage-of-International-Business.docx

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Advantage and Disadvantage of International Business.Advantage:1. Large scale activities and revenues that enable an organization to defend its markets and develop competencies at a costthat only few small organization can afford.2. Access to inputs (people, materials, energy and even building) at lower rate because of greater buying power.3. Economies of scale in all aspects of operations from R&D to distribution.4. The opportunity to position the organization and develop its brands at a global and therefore more influential level.5. Manipulation of income and expenses to minimize tax liabilities across country borders.6. More broad and up-to-date market information. (Retail)7. Greater diversity in management perspective. (Employing merger and diff. culture)8. Risk spreading. (Other risk as tech/regulatory can be reduced bcoz of merging)Disadvantage:1. Complication of the business design and coordination process, increasing the risk or likelihood of poor decision making.2. Diverse environment and resources in international business leading to greater compromise and less chance of meeting allneeds.

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Term
Fall
Professor
NoProfessor
Tags
Marketing, Firm, Soft drink

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