Final answer:
A company can extend its presence without physical expansion by outsourcing tasks to external contractors or by offshoring parts of its operations to countries with lower costs. Technological advances in communication support this global approach, as does the option of merging with or acquiring another company.
Step-by-step explanation:
One way a company can extend its presence without physically establishing itself within another region of the country is by outsourcing. Outsourcing involves the process of hiring outside contractors, sometimes abroad, to perform tasks a company once performed internally. This method allows companies to take advantage of different labor markets without the need for physical expansion. In today’s global economy, companies often move parts of their business, such as customer service centers or manufacturing plants, to countries with lower operational costs to stay competitive.
Globalization has facilitated the growth of multinational corporations (MNCs), enabling them to extend their reach across different countries. By using offshoring, another form of business expansion without physical presence, companies move some of their operations overseas to access cheaper labor markets.
Moreover, the use of modern communication technologies allows for instant communication and ease of business operations across borders. This has supported the trend toward globalization and the international mobility of corporations. In addition, some companies opt for mergers to expand and grow their influence without setting up new operations.