Firms that decide against international expansion to play it safe ________.
A) protect themselves from competition at home
B) gain a competitive edge against imports in their home markets
C) successfully shield themselves from foreign competition
D) risk losing their home markets
E) increase their chances of entering other markets

Question

Quizplus · Accepted Answer

By deciding against international expansion, firms may risk losing their home markets to competitors who do choose to expand globally. This is because competitors who operate globally may be able to provide products or services at lower prices due to economies of scale, or may be able to offer a wider range of products or services. As a result, a firm may miss out on potential opportunities to increase its market share or profits.

Firms That Decide Against International Expansion to Play It Safe