Which of the following is NOT a motivation for companies to expand internationally?

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!

The correct choice identifies "Reduction in operational efficiency" as something that is NOT a motivation for companies to expand internationally because effective international expansion is generally aimed at enhancing operational efficiency rather than diminishing it. Companies seek to tap into new markets, achieve risk diversification, and acquire valuable resources that contribute to improved efficiency and competitiveness.

When businesses expand globally, they often look to streamline operations, take advantage of lower production costs, access new technologies, or strengthen their supply chains. None of these objectives would encourage a reduction in operational efficiency; instead, they are focused on optimizing efficiency to drive growth and profitability.

In contrast, the other options highlight strategic benefits that motivate companies to pursue international expansion. Companies diversify risk by spreading operations across different geographical regions, gain access to new customer bases through market entry, and obtain essential resources that may not be available in their home market. All these factors contribute positively to a company's operational performance and long-term sustainability.

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