advantages and disadvantages of operating in global markets


	advantages and disadvantages of operating in global markets
	Advantages increased profits - increased potential target market and increased capacity for revenue - people abroad may be willing to pay more. spread risk - any potential decline in one market in one market may be compensated by an overseas market. economies of scale- global market could lead to increased economies of scale therefore a reduction in overall unit costs.	Disadvantages differences in consumer tastes- not certain the consumers overseas will have the same tastes in goods and services. existing competition- competition overseas with established and have a better understanding of local taste and cultures. may require high costs on promotion and advertising. different legislation- different rules overseas for example, product safety and marketing regulations therefore the company may need to change elements of their business to accommodate for the different legislations
	Evaluation

increased profits - increased potential target market and increased capacity for revenue - people abroad may be willing to pay more.
spread risk - any potential decline in one market in one market may be compensated by an overseas market.
economies of scale- global market could lead to increased economies of scale therefore a reduction in overall unit costs.

differences in consumer tastes- not certain the consumers overseas will have the same tastes in goods and services.
existing competition- competition overseas with established and have a better understanding of local taste and cultures. may require high costs on promotion and advertising.
different legislation- different rules overseas for example, product safety and marketing regulations therefore the company may need to change elements of their business to accommodate for the different legislations

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