In light of mounting competitive and cost-cutting pressures in the U.S., the need for health care services in Mexico and the potential of the Mexican economy, many U.S. hospitals are expanding their services to Mexico. For example, University Medical Center in Tucson, Arizona, provides continuing education classes for Mexican physicians, a toll-free telephone consultation line into Mexico and air transport service into Mexico. By expanding its services into Mexico, University Medical Center is using a _____ grown strategy.
A) Share building
B) Market development
C) Service development
D) Diversification
E) Market integration

Question

Quizplus · Accepted Answer

University Medical Center is expanding into a new market (Mexico) by offering new services (continuing education classes, consultation line, and air transport). This fits the definition of a market development strategy.

In Light of Mounting Competitive and Cost-Cutting Pressures in the U.S