What is considered a key motivation for companies to expand abroad?

Securing key resources is a primary motivation for companies to expand abroad because it allows them to gain access to essential materials, labor, or technology that may not be available or may be more costly in their home markets. By operating in different countries, businesses can tap into specific local advantages, such as lower production costs, unique natural resources, specialized workforce skills, or innovative technologies. This strategic move can enhance their competitiveness and sustainability in the global market, ensuring they have what they need to meet production demands and innovate effectively.

In contrast, higher taxes in domestic markets may lead companies to explore tax-efficient strategies rather than outright expansion. Limited access to global markets often motivates businesses to seek international opportunities, but it does not drive the need for resources specifically. Strict government regulations might encourage some companies to look for more favorable operating conditions elsewhere, but that does not directly align with the motivation to secure resources necessary for their business operations.