Why Do Companies Decide to Enter a Foreign Market

question 40

Multiple Choice

Why do companies decide to enter a foreign market?

• A)to capture economies of scale in product development, manufacturing, or marketing
• B)to raise input costs through greater pooled purchasing power
• C)to decrease the rate at which they accumulate experience and move up the learning curve
• D)to concentrate risk within a broader base of countries, especially when sales are down in one area and the company can undermine sales elsewhere
• E)to exploit the natural resources found within its home market

---

Definitions:

Transcranial Magnetic Stimulation

A noninvasive procedure that uses magnetic fields to stimulate nerve cells in the brain to improve symptoms of certain mental health conditions.

Brain Activity

The electrical and chemical processes occurring within the brain that enable thinking, feeling, and coordination of sensory and motor functions.

Pons

A hindbrain structure above the medulla; it regulates sleep and arousal and coordinates movements of the left and right sides of the body.

Hindbrain

Hindbrain is a part of the brain that includes structures like the cerebellum and the brainstem, which are responsible for basic life functions and coordination.