Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market, instead expanding within the twelve-nation region that includes its home country. Which one of these is true?
A) The firm is not engaging in international trade.
B) The firm is using a regional approach to international expansion.
C) The firm will not be able understand the cultures, legal, and social norms of this market.
D) Skaredykat is too afraid to implement an international strategy.

Question

Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market, instead expanding within the twelve-nation region that includes its home country.  Which one of these is true?
A) The firm is not engaging in international trade.
B) The firm is using a regional approach to international expansion.
C) The firm will not be able understand the cultures, legal, and social norms of this market.
D) Skaredykat is too afraid to implement an international strategy.

Quizplus · Accepted Answer

The firm is using a regional approach to international expansion, as it is choosing to expand within a twelve-nation region that includes its home country. This indicates a level of international trade, but not on a global scale. Option A is incorrect since the firm is engaging in international trade to some extent. Option C is incorrect as the firm is limiting its expansion to regions it understands well. Option D is an unwarranted assumption and lacks any evidence in the given information.