Question

Raymond Vernon states that the classic rationale for international diversification is to: Group of answer choices extend the product's life cycle. avoid domestic governmental regulation. preemptively dominate world markets before foreign companies can establish dominance. discover product innovations.

Answer 1

Answer:

Raymond Vernon states that the classic rationale for international diversification is to:

1. extend the product's life cycle.
2. discover product innovations.

Explanation:

International Diversification help in managing risk and positioning your portfolio for long-term growth.

Increased globalization and inter connectivity, increased bouts of volatility, lower bond yields and lower expected stock returns than in the past all suggest it's prudent for investors to branch out globally.

Also, positioning your products n a global scale opens the door to innovation that will help meet the needs of the diverse demographics within your reach.

Answer 2

Answer:

The correct option is to extend product's life cycle

Explanation:

International diversification is a risk management concept that involves businesses investing in more than one nation in order to reduce variability of investment returns.

Businesses invest internationally to ensure that profitability is maximized as losses from one country can counter-balanced with profits from another thereby guaranteeing investors positive returns, in other words,it is a "do not put all  your eggs in one basket approach" to running a business.

Hence, the main purpose here is to be able to increase products life cycle by selling in different markets in the world.