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Which primary motivation typically happens first for a U.S. company?

The company wants to produce globally to sell domestically.
The company wants to sell their products in global markets.

User Carljohan
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Final answer:

U.S. companies often first aspire to sell domestically produced products in global markets, driven by the desire for growth and access to international consumer bases. As they expand, both national interests and international economic dynamics can impact their strategies. The intricacy of international trade and policy considerations underlines the complexity of global market engagement.

Step-by-step explanation:

The motivation for a U.S. company to engage in international business can vary, but the primary reasons often include the desire to sell products in global markets and to secure resources and economic opportunities offered by globalization. Initially, U.S. companies might look to sell domestically produced goods to global consumers, utilizing advantageous factors of production such as technological advancements and cost-efficient labor. As part of their growth strategy, they might start by leveraging foreign capital investment to expand their domestic infrastructure, which can lead to producing globally to meet both domestic and international demands.

However, concerns about the implications of globalization on local communities, environmental standards, national security, and economic dependence often shape government policies which may influence these corporate strategies. These concerns highlight the intricate relationship between national policies, business interests, and global economic dynamics, emphasizing the need for a nuanced understanding of how the demand and supply model applies to international trade.

User VinceStyling
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