17 Analyse how expanding overseas can help a business to reduce risk.

[Sir Afzal Shad]

17 Analyse how expanding overseas can help a business to reduce risk. [3]
Hint: Spreads sales across different markets > A recession in one country may not affect sales in another > This makes the business's revenue more stable.

[Abdullah Baig]

Kn
Expanding overseas can help a business reduce risk by spreading its sales across multiple markets
App
For example, if a clothing company sells products in both the UKand the UAE a fall in demand due to a recession in the uk might be balanced by strong sales in the uae allowing total revenue to remain steady even when one market performs poorly which helps protect the business from sudden losses in any single country
An
Therefore, operating in several international markets makes a business’s income more stable and less vulnerable to local economic changes or demand fluctuations

[Aarib Saad]

(KN)It will allow the business to have multiple streams of revenue.
(APP)For instance, if there is a recession in one country, a company that has firms in multiple countries, like McDonald's will be able to rely on it's revenue from another country.
(AN)Thus, making it so that the business is able to maintain a good cashflow, attracting more shareholders towards the business, this will then give the business better ability to launch new products to develop USP, therefore the business will be able to develop a much stronger brand image.

[Fatima ibtehaj]

[KN]Expanding overseas can help a business reduce risk by spreading its operations across different markets.
[APP]For example, a clothing brand that sells in both Europe and Asia can offset a fall in European sales with rising demand in Asia, allowing it to balance losses and reduce overall business risk.
[AN]This diversifies its income sources, making it less dependent on one market and more stable overall. It can also reduce the impact of seasonal demand or local market changes, helping the business maintain steady profits.

[shamaim shakeel]

[KN] Expanding overseas means a business starts selling its products in foreign markets as well as in its home country. This helps to spread business activities across different regions.
[APP] For example, a company like Starbucks sells in many countries, so if sales fall in one region, it can still earn profits from others.
[AN] Expanding overseas can reduce risk because the business is not fully dependent on one market. If economic problems, competition, or seasonal changes affect one country, strong sales in another can balance the losses. This helps the business achieve more stable revenue and longterm growth.

[Naveen fatima]

[KN] Businesses face risks when they rely too much on one market or one group of customers.
[APP]For example, a clothing brand that only sells in Pakistan might lose sales if local demand drops, but selling in other countries like the UAE or the UK can keep revenue steady.
[AN]Expanding overseas can reduce risk because the business is not fully dependent on one market. If sales fall in one country, profits from another can cover the loss. It also spreads risk across different economies and customer tastes, helping the business stay stable even when local conditions change.

[Muaz Aamir]

[KN] Expanding overseas means a business starts selling its products or services in other countries instead of only its home country.

[AP] For example, if a clothing brand from Pakistan starts selling in the UK and Dubai, it’s no longer fully dependent on one country’s customers.

[AN] This helps reduce risk because if sales drop in one country the business can still earn money from others which keeps overall income more stable. It also helps if one country’s economy gets worse the business can rely on stronger markets and even avoid problems like currency drops or local competition.

[Abdullah Mohsin]

[KN] Helps spread sales across different economies.
[APP] For example, a clothing retailer like Khaadi operates in many countries This reduces the risk of being affected by a recession, as a recession in one country would not impact Khaadi's sales in another, helping to keep overall revenue stable.
[AN] This allows the business to deal with the recession while still earning profits from other markets, ensuring long-term stability and reducing dependence on a single economy.

[EmmanWaseem]

It spreads the sales in different parts of the world
If there is a recession on one market in another country it maybe no in another
This will not lower the revenue hence it is increasing

[abdurrehman waseem]

KN: Expanding internationally spreads operations across multiple markets.
App: For example, Coca-Cola sells in over 200 countries, reducing reliance on one market.
An: If one region faces economic recession or political instability, strong sales elsewhere can offset losses stabilizing overall revenue and reducing business risk.

[Aayan Zaidi]

KN: Expanding overseas means selling products to other countries, not just the home market.
APP: E.g if sales drop in Pakistan, a company can still earn money from customers in the UK or UAE.
AN: So, operating in different markets spreads risk. If one market fails, others can keep the business stable.