Research Paper on:
International Expansion Types Advantages and Disadvantages

Unformatted Sample Text from the Research Paper:
be considered when embarking on an international enterprise, particularly in the area of taxation and regulation. Still, while there are concerns about double taxation and difficult laws, Cosset (1995) notes  that the benefits of international portfolio diversification are well known. Studies have demonstrated that global diversification paves the way for reduced total risk without sacrificing anticipated profits (1995). The author  further suggests that this is "because market fluctuations are more synchronized" (1995,p.301). Indeed, diversification always pays off. In the case of a domestic firm, branching out internationally is likely to  mitigate corporate risk. While most may agree that international expansion is preferred from simply maintaining a business in the United States and not venturing out, there are many things to  consider. Taxation is a big nut but not the only concern. Also, there are many options an investor or business owner has. For example, he or she can simply export  product. Another option is expanding and licensing offices in another country, and a third is setting up a subsidiary that is domiciled in the foreign country. Each choice must be  carefully considered as they each come with both tax and marketing consequences, not to mention logistical concerns. How will such a company be staffed? Are executives willing to relocate to  a foreign country? Many questions must be asked when embarking on such a major project for a U.S. firm that has not yet done business outside of the country. In  order to reflect on such choices, a case study will be utilized. II. Case Study An international manager of a U.S. business by the name of Mr.  Smith has just developed a revolutionary new personal computer that can perform the same functions as IBM or Apple prototypes but the new clones cost about half as much