Firms have a finite amount of funds for expansion and growth. Entering foreign markets, by definition, means a firm is investing money in another country that is then not available for investing in the firm’s home country. For example, Nissan closed factories in Japan and added a new factory in the United States. GM shut down factories at home but kept them open in Europe. In this discussion, you will consider the ramifications of what happens when businesses decide to invest money elsewhere.
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