The costs associated with internationalization can offset the benefits of operating in multiple markets.

Question

Quizplus · Accepted Answer

Internationalization often involves significant upfront costs, such as market research, cultural adaptation, legal fees, and logistics expenses. These costs can be substantial and may take time to recoup through increased revenues or cost savings. As a result, the benefits of operating in multiple markets may be offset by these costs, at least in the short term. However, in the long run, internationalization can provide access to new customers, reduce dependence on a single market, and improve competitiveness.

The Costs Associated with Internationalization Can Offset the Benefits of Operating