Which of the following is an example of a pull factor for a focal firm?
A) arriving at the mature phase in a product's life cycle
B) declining demand in the home market
C) foreign government incentives
D) increasing competition in the home market

Question

Quizplus · Accepted Answer

Foreign government incentives are an example of pull factor as they attract the focal firm towards a particular foreign market by offering benefits such as tax concessions, subsidies, or lower tariffs. A) is not a pull factor as it signifies the end of a product's life cycle. B) is a push factor as it implies lack of opportunities in the home market. D) is also a push factor as it indicates unfavorable market conditions in the home market.

Which of the Following Is an Example of a Pull