Which of the following can induce a firm to expand into the international arena?
A)Consumer preferences in the domestic market vary widely.
B)Average income level of domestic consumers is high.
C)The firm operates in an industry that caters to the mass market.
D)The company wants to reduce its dependence on any one market.
E)The firm is yet to achieve economies of scale even though the domestic market has potential.

Question

Quizplus · Accepted Answer

The desire to reduce dependence on any one market can be a key motivator for firms to expand into the international arena. This helps to spread risk and ensure long-term sustainability, particularly if the domestic market is relatively small or volatile. The other options, such as varying consumer preferences or high average income levels, may drive firms to adapt their products or marketing strategies but may not necessarily lead to international expansion.

Which of the Following Can Induce a Firm to Expand