Question

The benefits of expanding into international markets include all of the following opportunities EXCEPT: Group of answer choices increasing the size of the firm's potential markets. economies of scale and learning. location advantages. favorable tax concessions and economic incentives by home-country governments.

Answer 1

Answer:

The answer to this question is option D. favorable tax concessions and economic incentives by home-country governments.

Explanation:

Expanding into the international market for business organisations means that they will have subsidiaries or investments in the foreign countries while retaining the business in the home country.

It is the undertaking of business activities in different countries.

The benefits derived from international market include increasing the size of the firm's potential markets, economies of scale and learning,  location advantages, but does not include favorable tax concessions and economic incentives by home-country governments.

Answer 2

Answer:

Favorable tax concessions and economic incentives by home-country governments.

Explanation:

There are various benefits which a company can avail by expanding itself to abroad although the most intimating benefits are getting tax concessions and other economic incentives. Now there could be various reasons why the home Govt would do it so.

Some of them are:

1. They want foreign investment in the country.
2. They are going through crisis and would want the company to grow so that they would also get the revenue.

Take example of Pakistan: For foreign companies, the recent govt has announced a huge tax cut, because Pakistan is in economic crisis and only foreign investment can pull Pakistan from it.