Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market, instead expanding within the twelvenation region that includes its home country. Which one of these is true?

(A) The firm is not engaging in international trade.

(B) The firm is using a regional approach to international expansion.

(C) The firm will not be able understand the cultures, legal, and social norms of this market.

(D) Skaredykat is too afraid to implement an international strategy.

Question

Business

Yoselin

14 September, 18:55

Skaredykat Inc. is considering initial expansion beyond its home market. The firm has decided not to enter markets that differ greatly from its home market, instead expanding within the twelvenation region that includes its home country. Which one of these is true?

(A) The firm is not engaging in international trade.

(B) The firm is using a regional approach to international expansion.

(C) The firm will not be able understand the cultures, legal, and social norms of this market.

(D) Skaredykat is too afraid to implement an international strategy.

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Answers (1)

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Haylie Osborne · Answer 1

The firm is not engaging in international trade is True.

(B) The firm is using a regional approach to international expansion.

Explanation:

When a company wants it's business to grow and expand in a new country it uses the regional approach. It is generally used when the company is quite established and it has a nice foothold in the country.

In the regional approach the business is first set up in the country and when it gains power it starts spreading across the borders to get a region as a whole.