Frequently, international market expansion motivated by overproduction did not represent full commitment by management, but rather safety valve activity designed for short-term activities only.

Question

Quizplus · Accepted Answer

Overproduction can lead to excess inventory and financial losses for a company. In order to alleviate these issues, management may pursue international market expansion as a short-term solution. However, this approach may not involve a full commitment to the international market and may simply serve as a temporary safety valve to address immediate production and inventory concerns.

Frequently, International Market Expansion Motivated by Overproduction Did Not Represent