Question

Global Operations Report (Scenario)

As Vice President of Global Expansion for Pax Telecom, Deva Mikiri is tasked with preparing a comprehensive report on the company's global operations over the past twenty years. Deva assigns three strategists to collaborate on the History portion of the report, which details the rationale behind Pax's decisions to expand operations in particular areas. Rashid Ahl focuses on early expansion to China, which occurred after China began to make its market more accessible to foreign companies. Markus Teller focuses on Pax's expansion to Eastern Europe, which was motivated by increased industry privatization in key countries. Lavonne Jackson focuses on expansion to Japan, which happened when the company's commercial bank expanded its service network to Asia.

Which of the following drivers of market globalization is Lavonne's research most likely to recognize as the factor responsible for the company's expansion to Japan?

a) Market access reforms
b) Industry privatization
c) Financial deregulation
d) Cultural convergence

Answer 1

Lavonne's research on Pax Telecom's expansion to Japan will most likely recognize financial deregulation as the key driver for the company's expansion into the region.

Step-by-step explanation:

The factor most likely to be recognized by Lavonne's research for Pax Telecom's expansion to Japan would be financial deregulation. As Japan's economy was stimulated post-WWII and developed into a financial powerhouse, the commercial bank's decision to expand its service network to Asia, including Japan, indicates that the easing of financial regulations played a significant role. This aligns with global trends where economies that participate in the international trade of goods and services, facilitate the flow of financial payments and investments, often through some form of deregulation.