Final answer:
True, international expansion is riskier than domestic expansion due to complexities such as different government regulations, cultural issues, language barriers, and supply chain challenges. Environmental, political, and societal concerns also influence companies and governments in their approach to international trade and expansion.
Step-by-step explanation:
True, International expansion is generally riskier than domestic expansion primarily due to factors such as different government regulations, cultural traditions, complexities in supply chain management, and language barriers. These aspects make the process more complex and unpredictable compared to expanding within a country's own borders. For instance, a company may face challenges in complying with foreign environmental protection laws, which may be less stringent than domestic ones, potentially leading to environmental concerns. Moreover, political considerations about economic dependencies and national security, like reliance on imported oil, also play a role in the decision-making process surrounding international trade.
Concerns about censorship and the potential misuse of international media are additional societal risks that accompany a globalized media landscape. Furthermore, issues such as fears of job loss, environmental dangers, unfair labour practices are a part of the broader debate about the consequences of international trade. Domestic policies tend to be more specific and manage direct consequences within a single nation's borders, whereas international policies must navigate the varied and dynamic complexities of multiple nations, each with its own interests and regulations. This further contributes to the inherent risks of international expansion.