Which of the following is NOT a reason why companies move into international operations?
A) To develop new markets for the firm's products.
B) To better serve their primary customers.
C) Because important raw materials are located abroad.
D) To increase their inventory levels.
E) To take advantage of lower production costs in regions where labor costs are relatively low.

Question

Quizplus · Accepted Answer

Moving into international operations typically involves high costs and risks, so companies are unlikely to do so solely to increase inventory levels. The other options (A, B, C, and E) are all common reasons why companies choose to expand internationally.

Which of the Following Is NOT a Reason Why Companies