For small businesses, the ultimate incentive to go global is the following:
A) Purely domestic firms are less likely to stay in business over the long run.
B) Government programs are available to ensure success of global firms, but not domestic ones.
C) If you fail to seize an international market opportunity, someone else will.
D) Research shows that global firms experience more consistent gains in profitability.

Question

Quizplus · Accepted Answer

The ultimate incentive for small businesses to go global is that if they fail to seize an international market opportunity, someone else will. With globalization, competition is not just local anymore. If a small business does not expand globally, then a foreign firm with a similar product/service will likely enter the local market and compete with them. Going global is a way for small businesses to secure their market position and protect it from foreign competition. The other options are not correct because purely domestic firms can still survive, government programs are not the ultimate solution for success, and research does not show consistent gains in profitability for global firms.

For Small Businesses, the Ultimate Incentive to Go Global Is