Companies Are Faced with the Decision Whether to Expand by Seeking

question 89

Essay

Companies are faced with the decision whether to expand by seeking new markets in existing countries or seeking new country markets for already identified and served market segments.Faced with these situations,what are the strategies that can be followed?

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Definitions:

Consumer Surplus

The gap between what consumers are prepared to spend on a good or service and the actual amount they end up paying.

Consumer Surplus

The divergence in total intended consumer expenditure on a product or service and the total actual expenditure.

Market Power

The ability of a company or entity to influence or control the terms and conditions of the market to some degree, affecting prices and competition.

Externalities

Financial consequences for unrelated third parties, which can manifest as either positive or negative effects.