Question

Which of the following is not a typical reason for a company to expand into the markets of foreign countries? A. A) Gaining access to new customers B. E) Spreading business risk across a wider geographic market base C. C) Achieving lower costs and enhance the firm's competitiveness D. B) Strengthening its capability to employ offensive strategies, especially those that involve preemptive strikes E. D) Capitalizing on company competencies and capabilities

Answer 1

Answer: Strengthening its capability to employ offensive strategies, especially those that involve preemptive strikes

Step-by-step explanation:

There are various reasons why a firm can expand into the markets of foreign countries. Firstly, it can lead to new customers as the firm expands its customers base.

Firms expanding their markets into foreign countries also lead to competitiveness and lowering cost due to economies of scale in the long run. It can also lead to the spread of business risks and capitalizing on the capabilities of the company.

Strengthening a company's capability to use offensive strategies is not a reason why firms move their markets to foreign countries.