In expanding outside its domestic market,a company can gain competitive advantage by

Question

Quizplus · Accepted Answer

Expanding outside its domestic market can allow a company to gain a competitive advantage by using location to lower costs or achieve greater product differentiation. Additionally, cross-border coordination can be used to gain further advantages that a domestic-only competitor cannot. Option A is incorrect because building profit sanctuaries may be costly but can also be a competitive advantage. Option B is incorrect as avoiding high-tariff/high-tax countries can limit a company's potential market and growth opportunities. Option C is incorrect as exchange rate fluctuations are a risk associated with an export strategy, not an advantage. Option E is incorrect as a multidomestic strategy may limit a company's ability to achieve economies of scale and may be more costly than a global strategy.

In Expanding Outside Its Domestic Market,a Company Can Gain Competitive