As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response.

By locating facilities in regions where the business laws are lax, the business works better and more profitably with fewer regulatory and legal aspects. An example is a company like Nike that aims at opening its business operations in countries where it can receive low business regulations, such as Indonesia and India. Low cost due to lax laws makes the company gain a competitive market advantage. However, the potential risks involved are economical and political, including currency values fluctuation, lack of global policing of products, increased counterfeit products, investment losses due to conflict, and government instability.

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Academic.Tips. (2022) 'As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response'. 9 October.

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Academic.Tips. (2022, October 9). As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response. https://academic.tips/question/as-firms-attempt-to-internationalize-they-may-be-tempted-to-locate-their-facilities-where-business-regulation-laws-are-lax-discuss-the-advantages-and-potential-risks-of-such-an-approach-using-speci/

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Academic.Tips. 2022. "As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response." October 9, 2022. https://academic.tips/question/as-firms-attempt-to-internationalize-they-may-be-tempted-to-locate-their-facilities-where-business-regulation-laws-are-lax-discuss-the-advantages-and-potential-risks-of-such-an-approach-using-speci/.

1. Academic.Tips. "As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response." October 9, 2022. https://academic.tips/question/as-firms-attempt-to-internationalize-they-may-be-tempted-to-locate-their-facilities-where-business-regulation-laws-are-lax-discuss-the-advantages-and-potential-risks-of-such-an-approach-using-speci/.


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Academic.Tips. "As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response." October 9, 2022. https://academic.tips/question/as-firms-attempt-to-internationalize-they-may-be-tempted-to-locate-their-facilities-where-business-regulation-laws-are-lax-discuss-the-advantages-and-potential-risks-of-such-an-approach-using-speci/.

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"As firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. Discuss the advantages and potential risks of such an approach, using specific examples to support your response." Academic.Tips, 9 Oct. 2022, academic.tips/question/as-firms-attempt-to-internationalize-they-may-be-tempted-to-locate-their-facilities-where-business-regulation-laws-are-lax-discuss-the-advantages-and-potential-risks-of-such-an-approach-using-speci/.

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