Opportunities in International Business
Read this section, which discusses the various challenges and opportunities encountered by companies as they engage in international business. When a company enters the global market, the application of management principles intensifies as the demands of stakeholders begin to take shape. This reading provides a roadmap to how companies expand internationally, emphasizing the importance of international licensing agreements and franchising opportunities. Pay close attention to how companies outsource manufacturing to other countries with lower costs of labor in order to maximize profits. And keep in mind that both domestic and international manufacturing options have advantages and disadvantages in regards to environmental conditions, skilled labor, financial incentives, and cultural differences.