Skinner Electronics plans to expand into foreign markets.Top executives want the firm to focus only on locations where the rule of law prevails.Which of the following should most likely be considered by Skinner?

Question

Quizplus · Accepted Answer

Wealthier, westernized countries are more likely to have established rule of law and regulatory infrastructure, making them a safer bet for Skinner Electronics to expand into.

Answer: D should be avoided. Totalitarian-style governments are less likely to have a reliable rule of law and may pose significant business risks for Skinner.

B and C are less clear cut and may depend on specific circumstances. Developing, non-Western countries may offer growth opportunities, but their regulatory environment can be unpredictable. Emerging economies experiencing rapid growth may also offer opportunities but should be approached with caution as their government institutions may not yet be fully developed or established.

Skinner Electronics Plans to Expand into Foreign Markets