international diversification strategy

International diversification strategy is a strategy by which companies base their operations in multiple countries. This allows them to spread out their operations across different markets and can help cushion any potential losses from a single market. Companies may enter foreign markets to capitalize on the potential for higher earnings than what is possible from the domestic economy. It also enables them to hedge their risks against political, economic, and currency fluctuations. By expanding into markets with different economic conditions and varying cultural and regulatory climates, companies can also gain access to new customers, new technologies, and strategic partnerships that could enhance their competitiveness.