The Reasons Why a Company Opts to Expand Outside Its

question 52

Multiple Choice

The reasons why a company opts to expand outside its home market include all of the following except

• A)to exploit its core competencies and capabilities
• B)to identify resources and capabilities in the company's home market
• C)to achieve lower costs thereby enhancing the firm's competitiveness
• D)to gain access to new customers for the company's products/services
• E)to achieve lower costs through economies of scale,experience,and increased purchasing power

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Definitions:

Consumer Income

Consumer income is the total earnings of an individual from all sources, influencing their spending and saving behaviors.

Jewelry

Decorative items worn for personal adornment, such as rings, necklaces, earrings, and bracelets, often made from precious metals and stones.

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' incomes.

Monthly Income

The total amount of income or earnings received by an individual or household in one month, including wages, salaries, benefits, and other sources.