which of the following is a reason for internationalization

which of the following is a reason for internationalization

to encourage the growth of competition in the home market

to stay closer to supply sources

to seek opportunities for growth through market concentration

to share the technology developed with other countries

to seek opportunites to minimize localization

Solution

Internationalization of trade allows a country or a company to expand its market in places that otherwise may not have been available. A consumer in America can buy an American or a Japanese or a German car. This results in increased competition, creating efficiencies in the home market. This helps the consumer take the benefit of the best product at the lowest possible cost.

Hence the reason for internationalization is to encourage the growth of competition in the home market.

A closed economy or an economy that is not internationlized is inefficient and its consumers pay a higer price for low quality goods.