Question

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

A. gaining access to new customers for the company's products/services.
B. spreading its business risk across a wider marketbase.
C. achieving lower costs through economies of scale, experience, and increased purchasing power.
D. exploiting its core competencies and capabilities.
E. identifying resources and capabilities in the company's home market.

Answer 1

E. identifying resources and capabilities in the company's home market.

Step-by-step explanation:

Expanding into international markets gives a company access to new markets, thereby increases the number of its customers. The company will have to increase its production to cater to a large number of customers. Bulk production results in the company enjoying economies of scale.

For a company to enjoy to consider international markets, it must have already identified its capabilities in the domestic market. The reason for seeking foreign markets if to fully exploits its existing capabilities and resources. Expanding to international markets involves building on the already identified resources and abilities.