Question 32
International MarketingUse the following information to answer questions 32 and 33.
Saka Ltd. Has decided to engage in international marketing but wants to minimize the risk involved.
Which of the following reasons would have influenced the foreign company's decision?
- A.Increase regulation in the foreign market.
- B.High labour cost in the foreign market.
- C.Low demand in domestic market.
- D.Availability of subsidies in domestic market.
Show the answer and explanation
Answer: C (Low demand in domestic market.)
Explanation
Low demand at home pushes a firm to look for buyers abroad.