Geographic diversification is crucial for several reasons:
Risk Mitigation: By operating in multiple regions, companies can cushion the impact of adverse conditions in one market. Revenue Growth: Entering new markets can provide access to new customer bases, increasing revenue streams. Competitive Advantage: Diversified companies often have a competitive edge, as they can leverage resources, knowledge, and innovations from different markets. Economies of Scale: Expanding operations can lead to cost savings through economies of scale in production, distribution, and marketing.