Question

A payroll company in the nation of Antono is seeking to expand beyond its borders while limiting administrative and political distance in the new country. Which potential site is the best one for this type of expansion?

Answer 1

Answer:

Usually when companies plan to expand their activities to foreign nations, they will seek to do it in places that traditionally had long relationships with their home country. If Antono is located in either South or Central America then the company should try to expand to either one of its direct neighbors or Spain (or some other European country that has a strong relationship with them).

Most countries in the Americas had colonial relationships with their neighbors or some European country. For example, the US first trading partner was the UK and when American companies want to do business in Europe they established themselves in the UK.