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25 March, 15:30

Research a domestic company that has not performed well overseas. Identify circumstances that may affect the decision to downsize and withdraw from the country. Why do some companies choose to stay open abroad in spite of diminishing returns?

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  1. 25 March, 15:43
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    One of the shopping mall that is renowned in the United States yet has neglected to make any cast in the nations abroad is Walmart. It has been ineffective in recreating its achievement in other remote markets. This is for the maximum portion in light of the fact that the organization has held its American style of selling items and has not merged the neighborhood culture of the outside business sectors in its shopping complex.

    In Germany, clients discover some staple goods at a lower cost in neighborhood stores when contrasted with following through on greater expenses in Walmart. The inverse occurred in Japan where costs by Walmart were brought down, be that as it may, individuals in Japan partner low costs with low quality and accordingly didn't buy the item. In this manner, the organization has withdrawn from certain nations as it was procuring misfortunes.

    A few organizations may decide to remain open abroad regardless of unavoidable losses since shutting down their activities may be costlier and they should acquire greater expense in shutting their tasks. In this manner, they decide to stay open disregarding consistent losses.
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