With the growth in demand for exotic foods, Possum Inc.’s CEO Michael Munger is con[1]sidering expanding the geographic footprint of its line of dried and smoked low-fat opos[1]sum, ostrich, and venison jerky snack packs. Historically, jerky products have performed well in the southern United States, but there are indications of a growing demand for these unusual delicacies in Europe. Munger recognizes that the expansion carries some risk. Europeans may not be as accepting of opossum jerky as initial research suggests, so the expansion will proceed in steps. The first step will be to set up sales subsidiaries in France and Sweden (the two countries with the highest indicated demand), and the sec[1]ond is to set up a production plant in France with the ultimate goal of product distribu[1]tion throughout Europe. Possum Inc.’s CFO, Kevin Uram, although enthusiastic about the plan, is nonethe[1]less concerned about how an international expansion and the additional risk that entails will affect the firm’s
- What is a multinational corporation? Why do firms expand into other countries?
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