A firm may narrow its focus to a specific region of the world
A) because that market is most different from its domestic market and so represents an unexploited "greenfield opportunity" for its products.
B) in order to obtain greater economies of scale.
C) because of political and economic agreements such as the European Union and the North American Free Trade Association.
D) to take advantage of limited protections of intellectual property so that it can manufacture innovative products without restrictions.

Question

Quizplus · Accepted Answer

Political and economic agreements such as the European Union and the North American Free Trade Association have eliminated trade barriers and made it easier for firms to conduct business in specific regions. By focusing on a specific region, a firm can benefit from these agreements and access a larger market with fewer barriers.

A Firm May Narrow Its Focus to a Specific Region