Which of the following are reasons why companies move into international operations?
A) To take advantage of lower production costs in regions of inexpensive labor.
B) To develop new markets for their finished products.
C) To better serve their primary customers.
D) Because important raw materials are located abroad.
E) All of the above.

Question

Quizplus · Accepted Answer

All of the reasons listed can be valid motivations for companies to move into international operations. By taking advantage of lower production costs in regions of inexpensive labor, a company can increase their profitability. Developing new markets for finished products allows for growth and expansion of the company's customer base. Better serving primary customers can enhance customer satisfaction and loyalty. Accessing important raw materials abroad can ensure a company's supply chain is not disrupted and they have a competitive advantage.

Which of the Following Are Reasons Why Companies Move into International