The best means to accomplish the revenue-related motive of attracting new sources of demand is to: a. establish subsidiaries in markets whose business cycles differ from those where existing subsidiaries are based. b. establish a subsidiary or acquire a competitor in a new market. c. acquire a competitor that has controlled its local market. d. establish a subsidiary in a market where tougher trade restrictions will adversely affect the firm's export volume.

Question

Business

Ashlyn Walls

29 January, 05:01

The best means to accomplish the revenue-related motive of attracting new sources of demand is to: a. establish subsidiaries in markets whose business cycles differ from those where existing subsidiaries are based. b. establish a subsidiary or acquire a competitor in a new market. c. acquire a competitor that has controlled its local market. d. establish a subsidiary in a market where tougher trade restrictions will adversely affect the firm's export volume.

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Peterson · Answer 1

B) establish a subsidiary or acquire a competitor in a new market.

Explanation:

If you want to increase the demand of your product in a new market or foreign country, you must start operating in that new market or foreign country. The best way to do so is by setting up your own subsidiary or by purchasing a current competitor in that market. Generally the less risky but also the most expensive way is to acquire a competitor, but it all depends on your growth strategy and the availability of purchasable firms.