Why Do Companies Decide to Enter a Foreign Market

question 67

Multiple Choice

Why do companies decide to enter a foreign market?

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

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Definitions:

Positively Reinforced

A process in behavioral psychology whereby a behavior is encouraged by rewards, leading to an increase in the likelihood of its recurrence.

Anxiety

A feeling of worry, nervousness, or unease typically about an imminent event or something with an uncertain outcome.

Partial Reinforcement

A conditioning strategy where a reward is not administered every time the desired behavior is performed, leading to more resistant learned behavior.

Continuous Reinforcement

The reinforcement of each and every correct response.