Which of the following is a reason for a company to go international?
A) The company manufactures products that have saturated foreign markets.
B) The company holds a patent for the best production technology for its products.
C) The company is manufacturing the finished product in their country at a very high production cost.
D) The company has the best access to the basic resources in their country needed to sustain their primary business.
E) The company faces political and regulatory hurdles in other countries.

Question

Quizplus · Accepted Answer

If a company is manufacturing its product in their country at a very high production cost, then it may be economically advantageous for them to go international in order to reduce production costs. This can be achieved by manufacturing products in countries where labor is cheaper or by sourcing raw materials from countries with lower prices. The other options (A, B, D, and E) do not necessarily provide a compelling reason to go international.

Which of the Following Is a Reason for a Company