Geographical diversification is crucial for several reasons:
Risk Management: By operating in multiple regions, companies can mitigate risks associated with economic downturns, political instability, or natural disasters in one area. Revenue Growth: Diversifying geographically can tap into new customer bases, driving revenue growth and increasing market share. Competitive Advantage: Expanding into new regions can provide a competitive edge, especially if competitors are less geographically diversified. Resource Optimization: It allows businesses to take advantage of different resources, such as cheaper labor or raw materials in other regions.