Many companies eventually face the realization that to grow, they must expand to international markets. Often times, these companies are faced with the decision of whether or not to offshore their business elsewhere in order to navigate the international market more effectively.
In this paper, we will illustrate the economic factors that make Ireland, The British Virgin Islands, and Delaware (USA) all viable offshore markets for Quattroporte Inc. business. The following analysis will lead us to recommending one jurisdiction along with justification.
Globalization and Comparative Advantage
Globalization is the process of increased market interaction between countries through trade, immigration, technology and politics (Carbaugh, 2016). Globalization has occurred in waves, the first prior to World War I, through decreases in tariff barriers which resulted in countries beginning to trade. The second wave occurred after World War II. Developed countries eliminated barriers, allowing for increased growth in manufactured goods and trade. The latest wave of globalization is highly technological and occurring in all countries around the world, where location is no longer a barrier to trade. A nation develops a comparative advantage in a product when it gains an economic trade advantage by specializing in that goods or service.