Global expansion
A) is feasible only for large companies.
B) can enable companies to increase their profitability and grow their profits more rapidly.
C) allows domestic companies in the mature stage of the industry life cycle to maintain profits but not to increase them.
D) requires locating facilities in foreign countries.
E) makes sense for manufacturing firms but not for service firms.

Question

Quizplus · Accepted Answer

Global expansion can provide new market opportunities which can increase a company's profitability and grow profits more quickly. It is not limited to large companies and can be feasible for small and medium-sized enterprises as well. It does not necessarily require locating facilities in foreign countries, and it can also make sense for service firms. Domestic companies in the mature stage of the industry life cycle may also benefit from global expansion to maintain or increase profits.

Global Expansion