Lydia presents Walter with the opportunity of expanding into a new market (the Czech Republic). Lydia goes further and points out that entry should not be difficult given Walter’s high-purity “blue” methamphetamine and the inferior alternatives available there. Also, it is worth noting that such overseas expansion would not have been possible without Lydia’s expertise regarding global supply chains.
See more: comparative advantage, demand, elasticity of demand, elasticity of supply, expansion, exports, intra-firm trade, market entry, middleman, monopolistic competition, multinational enterprise, opportunity cost, product differentiation, trade barriers, transaction costs