Which of the following is true of the factors regarding the selection of a foreign market?
A) All nation states in the world hold the same profit potential for a firm contemplating foreign expansion.
B) The long-run economic benefits of foreign expansion are a function of factors such as the likely future wealth of consumers.
C) Less populous nations have a higher potential for economic growth.
D) Politically unstable nations by virtue of their higher potential for growth are the best foreign markets.
E) The attractiveness of a country as a potential market for an international business depends only on its geographical location.

Question

Quizplus · Accepted Answer

The long-term benefits of foreign expansion depend on various factors, including the likely future wealth of consumers in a particular market. This indicates that not all international markets hold the same profit potential. Hence, option A is incorrect. Option C is also incomplete, as the population size is only one of the factors impacting a nation's economic growth potential. Option D is incorrect because political instability may reduce the attractiveness of a nation for foreign investments. Option E is incorrect because geographical location is one of the many factors that influence the attractiveness of a foreign market.

Which of the Following Is True of the Factors Regarding