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

[M huzaifa jillani]

(KN)
Expanding overseas means selling products or services in other countries not just the home market.
(APP)
For example a Pakistani clothing brand that starts selling in the UK and Middle East can reach more customers instead of relying only on local sales.
(AN)
This reduces risk because if sales fall in one country due to economic problems or competition the business can still earn money from other markets. It also helps the business balance seasonal or demand changes between countries between countries leading to more stable income and long term growth.

[hassanalizafar]

[KN] External growth allows a firm to spread its sales(risk) across different markets so it doesn’t rely on just one country.
[APP] For instance, if Toyota faces a drop in demand in Japan strong sales in markets like Europe or the USA can help balance out the loss.
[AN] This spreads the business risk protects revenue from local recessions which keeps overall income stable by which it maintains steady cash flow supports for business operations even during downfall in sale and helps build longterm financial security.

[Shaliza khawaja]

This helps them reduce risk as its reducind risk by diversifying its sources of sales and incomes
for example a clothing brand exanding too asia and europe won't just depend on customers of one region
if business in one country faces a loss the other regions business can help it, this also helps them take advantage of growing markets abroad furthermore it helps business become less vulnerable to local economic downturns or recessions.

[sarah_naeem]

[KN]: Expanding a business overseas can help reduce risk as business starts to earn from more than one market and if one country's market fails the business would still be able to recover and secure steady sales.
[APP]: For example, brands like Coach, Chanel, Adidas, etc have branches in many countries across the world which makes the chances of business to fail very low.
[AN]: Thus, due to this the business has higher sales and revenue which leads to customer loyalty which further strengthens brand image and leads to business's long term growth and success.

[Areeba Arshad]

[KN] Expanding overseas allows a business to operate in multiple countries rather than relying on just one market.
[APP] For example, a clothing brand selling in both Europe and Asia can balance its sales between regions.
[AN] This spreads risk across different markets. So if one country faces a recession or falling demand, sales in another can offset the loss, making the business’ overall revenue more stable and secure.

[Tuqwa]

KN:expanding overseas allows a business to spread its sales across different countries and markets.
app:If one country faces an economic downturn or falling demand the business can still earn revenue from other regions where sales remain strong.this diversification reduces dependence on a single market.
an:this helps stabilise overall revenue and protects the business from major losses during local recessions or market changes.