THE RELATION BETWEEN INTERNATIONAL EXPANSION AND PERFORMANCE IN SERVICES COMPANIES Cover Image

RELAŢIA DINTRE EXPANSIUNEA INTERNAŢIONALĂ ŞI PERFORMANŢĂ ÎN FIRMELE DE SERVICII
THE RELATION BETWEEN INTERNATIONAL EXPANSION AND PERFORMANCE IN SERVICES COMPANIES

Author(s): Corina Grigorovici
Subject(s): Economy
Published by: Editura Universităţii Vasile Goldiş
Keywords: services; internationalization; performance

Summary/Abstract: The expansion abroad of the companies determines significant benefits in the performance area, the arguments that sustain this affirmation are multiple: the ability to absorb scale economies, opportunities in terms of differential costs dependent on the location, the capacity to accelerate the development and introduction of the new products on the market. But, continuing to expand outside the borders may be accompanied by a diminution of profit raise and negative marginal benefits after a certain optimum level of abroad activity. After the optimum moment, the costs associated to the control and coordination of the overseas branches, and the administrative obstacles met in the management of the different markets under cultural aspect, with a variety of unique needs of the clients’ may slip forward the potential benefits of the multinational expansion.

  • Issue Year: 18/2008
  • Issue No: 3
  • Page Range: 99-106
  • Page Count: 8
  • Language: Romanian
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