Question

Operating in multiple international markets can provide firms with __________ perhaps even in terms of __________.

Group of answer choices

location advantages; larger markets

research and development activities; larger markets

new learning opportunities; research and development activities

economies of scale and learning; larger markets

Answer 1

Answer: new learning opportunities; research and development activities

When a firm is operating in multiple international markets, the firm gets an opportunity to explore different markets. The market which it is operating in is very huge and this gives an opportunity for the firm to learn because each and every country is different. The standards used, technology used, work practices, best industry practices, etc. So, a firm can learn from the markets. Research and development activities are essential because each country is different in terms of people, expectations, etc. So, research and development activities needed to be carried out to understand the requirements of different categories of people and to serve them accordingly.