Apparel company RED Lion Ltd. has a strong presence along the West Coast in the U.S., and is looking to expand its market overseas. The company began through the export route, exporting apparel to firms in the U.K., but now wants to establish manufacturing units abroad. Which of the following would weaken the company's decision to expand abroad?

Question

Quizplus · Accepted Answer

If the economic systems in the two countries are very different, it may pose significant challenges for RED Lion in terms of adapting to new regulations, tax laws, and business practices. This could make it difficult for RED Lion to operate efficiently and profitably in the new market, which could weaken its decision to expand abroad. Choices A, B, C, and E are not directly relevant to the company's decision to expand abroad, and therefore do not weaken it.

Apparel Company RED Lion Ltd