Nescat Autos, an automobile manufacturing company, developed a secondary market for its products in a foreign country. This allowed the company to minimize its losses when its primary market failed to generate enough revenue to benefit the company. In this scenario, which of the following is most likely to have influenced Nescat Autos's decision to set up a market in another country?
A) Inflow of innovation
B) Reduced risk
C) Access to factors of production
D) Growth of domestic industries

Question

Quizplus · Accepted Answer

Setting up a secondary market in another country helps Nescat Autos reduce risk by diversifying its market presence, thus minimizing losses when the primary market underperforms.

Nescat Autos, an Automobile Manufacturing Company, Developed a Secondary Market