Which of the following is a proactive reason that prompts firms to expand overseas?
A) avoiding restrictive trade barriers
B) solving logistical problems
C) responding to foreign competitors
D) seeking economies of scale

Question

Quizplus · Accepted Answer

Seeking economies of scale is a proactive reason for expanding overseas because it involves a deliberate effort to achieve cost advantages by operating on a larger scale and realizing greater efficiencies in production and distribution. This is different from avoiding trade barriers, responding to competitors, or solving logistical problems, which are often reactive reasons that firms expand overseas in response to external pressures or challenges.

Which of the Following Is a Proactive Reason That Prompts