The most important element in determining whether and how a firm should expand overseas is
A)the degree of government subsidies and protection provided
B)whether the firm's competitive advantages can be transferred abroad and how this can best be done
C)the correlation between the domestic and world economies
D)the extent of political risk overseas

Question

Quizplus · Accepted Answer

The most important element in determining whether and how a firm should expand overseas is whether the firm's competitive advantages can be transferred abroad and how this can best be done. This includes factors such as understanding the local market, adapting to cultural differences, and identifying and leveraging existing relationships. Factors such as government subsidies, political risk, and economic correlation are also important, but they are secondary to the firm's ability to succeed in the foreign market.

The Most Important Element in Determining Whether and How a Firm