Question

U.S. businesses and those of other countries are seeking to expand around the world for many reasons. Which of the following is not one of those reasons?
a. Passage of favorable trade agreements
b. Development of new transportation and information technology
c. An increase in underdeveloped countries
d. Maturing domestic markets

Answer 1

Answer:

C

Explanation:

An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky