Vantex Fabrics is a U.S.firm that designs,manufactures,and sells high-quality fabrics used for home decor.Executives at the firm believe that Vantex could significantly increase its profitability by exporting fabrics to foreign markets.The vice president of marketing is in favor of exporting to England,while the vice president of finance asserts that the firm would benefit most from exporting to China.Which of the following,if true,best supports the vice president of marketing's suggestion?
A) Incremental internalization reduces the exporting risks facing Vantex.
B) Rapid internationalization decreases the likelihood of failure for Vantex.
C) Vantex plans to diversify its product offerings within the next ten years.
D) Vantex employs 450 people and will likely develop worldwide operations within 12 months.

Question

Quizplus · Accepted Answer

Incremental internalization refers to gradually expanding into foreign markets, which can help Vantex mitigate the risks associated with exporting. Exporting to England, a country with a similar language and culture to the United States, would be a good starting point for Vantex to gain international experience and gradually expand into other foreign markets.

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