Which of the following is NOT a typical reason for companies to expand into the markets of foreign countries?

Which of the following is NOT a typical reason for companies to expand into the markets of foreign countries? 



A. To gain access to new customers, especially when a company encounters dwindling growth opportunities in its home market.

B. To strengthen its capability to employ vertical integration strategies, especially those that involve partial integration (building positions in selected stages of the industry's value chain).

C. To achieve lower costs and enhance the firm's competitiveness.

D. To capitalize on company competencies and capabilities.

E. To spread business risk across a wider geographic market base.


Answer: To strengthen its capability to employ vertical integration strategies, especially those that involve partial integration (building positions in selected stages of the industry's value chain).


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