L'Oreal acquired two U.S.firms that developed and sold hair care products to African-American customers.This permitted it to build a new ethnic hair care division in Europe and Africa.This represents an advantage of international expansion using
A) arbitrage.
B) optimization of the location of value-chain activities.
C) performance enhancement.
D) learning opportunities.

Question

Quizplus · Accepted Answer

By expanding into new markets, corporations expose themselves to differing market demands, research and development capabilities, functional skills, organizational processes, and managerial practices. This provides opportunities for managers to transfer the knowledge that results from these exposures back to their home office and to other divisions in the firm. Thus, expansion into new markets provides a range of learning opportunities.

L'Oreal Acquired Two U