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organization expands abroad to create value that substitutes for what they could create at home T...

organization expands abroad to create value that substitutes for what they could create at home T or F?

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Answer #2

Answer: F

This is false. Firms expand internationally because of creating value in diversifying market with greater exposure, which they can’t get in domestic market. Therefore, there is no substitute.

Example: Suppose a steel product may not have big market in home, because the country is already developed and there are limited scope of infrastructural constructions work; compare to this, the company can get better market in developing countries where it can creates value by supplying steels in newly constructed railway tracks.

answered by: anonymous
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