What is a primary motivation for companies to engage in international business?

Prepare for your UCF GEB3375 Intro to International Business Exam 1. Utilize flashcards and multiple choice questions with explanations to ace your test. Get fully equipped!

Market expansion serves as a primary motivation for companies to engage in international business because it allows businesses to reach new customers beyond their domestic markets, which can lead to increased sales and profits. By entering foreign markets, companies can diversify their market presence and reduce dependence on their home market, helping to mitigate risks associated with economic downturns in any single country.

In addition, expanding internationally can enable companies to tap into emerging markets that may have high growth potential, gain competitive advantages, and enhance brand recognition on a global scale. This strategic expansion can also foster innovation, as companies acquire new insights and practices from diverse markets, ultimately enhancing their overall business performance.

The other options do not align with the main goals of international business. Decreasing product quality does not motivate international expansion and would be detrimental to a company's reputation and sales. Likewise, a reduction in employee numbers is typically associated with cost-cutting measures rather than an aim of international business, and regulatory restrictions represent barriers rather than motivations for seeking to operate in international markets.

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