Final answer:
A business might expand globally due to greater control over global branding, attractive trade agreements, market saturation at home, and to outpace domestic competition. Environmental and political factors can also motivate expansion, as companies may seek countries with more favorable regulatory landscapes.
Step-by-step explanation:
Factors that might cause a business to expand globally include greater strategic control over global branding, attractive trade agreements with foreign countries, and saturated market demand at home. Globalization efforts are strengthened by international agreements that counteract domestic protectionist measures, making it politically advantageous for businesses to expand beyond their borders. Moreover, reductions in trade barriers, coupled with advancements in transportation and communication, have heightened awareness of global markets.
Competition is another catalyst for global expansion. Firms may seek to evade domestic competition from businesses offering better or cheaper products by tapping into new markets. Concurrently, consumers around the world benefit from a diverse range of products, often at lower prices, while companies that manage to offer competitive goods can significantly increase their profits.
Environmental and political concerns tie into the decision to expand globally as well. Countries might adopt policies to protect domestic interests, such as jobs and national security, but these same fears can drive businesses to seek more hospitable environments abroad where regulations may be more lenient.