When should a firm consider expanding from strictly domestic trade to international trade? When should it consider becoming further involved in international trade? What factors might affect the firms desicions in each case?

Many businesses start from homes due to they can't afford to pay or rent a property yet while run their business. Businesses have different methods of operation, while some operate strickly domestically, others might want to either sell domestically too or do same alongside internationally.

A company can begin expanding or considering international trade on it's sales when they begin to receive large recommendation and request internationally.

The factors that might affect most cases always be fear and cost related. Fear of being kicked out of the market by competitors and cost in the sense of competitors beating his prices to give them a challenge.

Tundexi Tundexi · Answer 2 · 2022-01-04T11:44:15+01:00

Any firm should start consider expanding from domestic trade to international trade when its has already saturated the domestic market and needed to expand outside of the country for further growth opportunities.

Normally, a company can begin expanding its scale on international trade when they begin to receive large recommendation and request internationally.

Also, some of the factors that might affect them includes operation cost, trade barrier, competitors etc, in the international market etc

However, a firm should start consider expanding from domestic trade to international trade when its has already saturated the domestic market and needed to expand outside of the country for further growth opportunities.