The best way to accomplish the revenue-related motive of attracting new sources of demand is to:
A)acquire a competitor that has controlled its local market.
B)establish a subsidiary or acquire a competitor in a new market.
C)establish a subsidiary in a market where tougher trade restrictions will adversely affect the firm's export volume.
D)establish subsidiaries in markets whose business cycles differ from those where existing subsidiaries are based.

Question

Quizplus · Accepted Answer

Establishing a subsidiary or acquiring a competitor in a new market would allow the company to tap into a new customer base and increase revenue. This approach would also provide an opportunity to benefit from the knowledge and experience of the acquired company or subsidiary. Acquiring a competitor that has already controlled the local market (Option A) may not necessarily attract new sources of demand as the market would already be saturated. Establishing a subsidiary in a market with trade restrictions (Option C) may not be an effective strategy if the trade restrictions would negatively impact the firm's export volume. Establishing subsidiaries in markets with different business cycles (Option D) may not necessarily attract new sources of demand and may not be feasible if such markets do not align with the firm's core competencies.

The Best Way to Accomplish the Revenue-Related Motive of Attracting