Going InternationalAmerican businesses are part of a global economy r

游客2023-08-01 87

问题 Going International
American businesses are part of a global economy regardless of how large and small they may be. Companies such as McDonald’s see expansion into new foreign markets as a primary strategy for boosting sales and profits. McDonald’s expands through various means from building company owned outlets to licensing and partnership agreements. McDonald’s is but one US company that has found domestic sales slowing due to saturated (饱和) domestic markets, thus leaving it little choice about how to increase earnings. PepsiCo is another US company that is pursuing overseas markets to overcome a less than satisfactory 4 to 5 percent domestic sales growth.
In general, companies go international for two basic sets of reasons: proactive and reactive. Proactive motives include the search for new customers, new markets, increased market share, increased return on investments, needed raw materials and other resources, tax advantages, lower costs and economies of scale. This last reason, economies of scale, encourages companies to find foreign partners to share the costs connected with building factories, conducting research, and expanding one’s sales and presence in additional markets.
The drive to reduce costs has led to setting up operations in countries with lower wages and fewer restrictions on business. Many businesses from around the world have chosen northern Mexico for its nearness to American customers and lower wages and benefits -- on average one- fourth to one-fifth those of the United States and Japan.
Reactive motives include the desire to escape from trade barriers, and other government regulations, to better serve customers and to remain competitive. Nearly every major foreign producer of automobiles has established subsidiaries (子公司) in the US to escape American trade restrictions. One example is Mercedes-Benz with its manufacturing operations in Alabama.
The desire to escape government regulation is not limited to automobile manufacturers. Japan’s largest cosmetics maker, the Shiseido Company, is planning to invade US and European markets in response to government actions. Shiseido had long enjoyed a comfortable dominance of Japan’s $14 billion-a-year cosmetics market. Lack of strict antitrust law (反垄断法) let it keep retail prices high, while import regulations shielded it from cheap foreign products. Not since 1995, Japan has clamped down on Shiseido’s business practices and deregulated cosmetics imports. Shiseido has now to enter foreign markets.

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答案 Expanding into overseas markets.

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