U1 Why do Countries Expand Internationally

Question 1

Why do businesses expand markets and increase sales?

Answer 1

Lead to more profits and business success.

Question 2

How did MAC Cosmetics expand their markets?

Answer 2

• MAC Cosmetics increased sales and expanded internationally, selling their products in 118 countries.
• They controlled 45% of cosmetic sales and had $3.6 million in USD.

Question 3

What does diversification in international markets mean for companies?

Answer 3

• entering specific international markets.
• Having a presence in multiple countries, reduces dependency on the economy of one country.
• protects investments and markets, mitigating the impact of a recession in one country.

Question 4

Why do companies expand globally for competitiveness?

Answer 4

• Companies expand globally to protect themselves from competitors or potential competitors.
• They aim to gain an advantage over rivals.
• Even small businesses face competition from international companies, and local businesses may struggle to compete with the selection and prices offered by multinational companies.
• Some local businesses may choose to find wider markets or merge with larger, possibly international companies for survival.