International Operations: Case Study

2019 Words Jan 30th, 2018 8 Pages
In most cases, companies expand their business on international level. This is because the numerous growth opportunities provided by markets they have not addressed before can help them reduce their costs by outsourcing some of their processes and activities to cheaper destinations, or to increase their incomes by addressing new markets and new customer segments. The number of companies that outsource their production process to countries in Asia, Africa, Eastern Europe that are able to provide skilled workforce at lower costs is increasing. The scope of this international operation can be observed in the significant price reductions in product categories like electronics, clothing, and numerous types of services.
The reduction of production costs and the prices of these products allow producers to increase the supply, and to control and influence the demand. The savings determines by international operations can be used in developing strategies intended to influence consumer behavior, and to increase consumption. By increasing consumption on a certain period of time, producers create certain patterns that customers get used to following. This determines significant income increases for these companies. Therefore, it is important to invest…

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