Market-seeking FDI attempts to secure market share and sales growth in the target foreign market. Apart from market size and the prospects for market growth, the reasons for market-seeking FDI include situations in which
A) the firm's main suppliers or customers have set up foreign producing facilities abroad and the firm needs to follow them overseas.
B) the firm's products need to be adapted to local tastes or needs, and to indigenous resources and capabilities.
C) the firm considers it necessary, as part of its global production and marketing strategy, to maintain a physical presence in the leading markets served by its competitors.
D) all of the above.

Question

Quizplus · Accepted Answer

All the options (A, B and C) are situations in which a firm might consider market-seeking FDI as a strategy to secure market share and sales growth in a foreign market. These situations may arise due to various reasons such as following key customers or suppliers, adapting products to local needs or maintaining a presence in leading markets. Therefore, the best choice is D as it includes all the possible scenarios.

Market-Seeking FDI Attempts to Secure Market Share and Sales Growth