Which of the following is not a typical reason for companies to expand into the markets of foreign countries?
A) To gain access to new customers
B) To strengthen its capability to employ vertical integration strategies, especially those that involve partial integration (building positions in selected stages of the industry's value chain)
C) To achieve lower costs and enhance the firm's competitiveness
D) To capitalize on company competencies and capabilities
E) To spread business risk across a wider geographic market base

Question

Quizplus · Accepted Answer

Expanding into foreign markets to strengthen vertical integration strategies is not a typical reason for companies to expand abroad. The other options, such as gaining access to new customers, achieving lower costs, capitalizing on competencies, and spreading business risk, are commonly cited reasons for expanding into foreign markets.

Which of the Following Is Not a Typical Reason for Companies