Can firms that expand internationally increase their profitability more than their domestic markets?

Question

also in what ways they can increase there profitability and Do different industries have different globalization potential?

Answer 1

Domestic market is called the Internal market and it is this market that firms develope first. When they have covered the internal market they expand to external markets. This gives them profits, atleast they have their fixed costs realised this way even if they sell at reduced costs abroad.

Answer 2

Overseas expansion does not necessarily increase profits. It has its own risks. But it indicates the company is ambitious and expansion abroad provides greater diversification.