Question at position 9 Which one of the following is not a benefit of using an international strategy?increased market size returns on investmenteconomies of scalehigher operational costs单项选择题
A
increased market size
B
returns on investment
C
economies of scale
D
higher operational costs

Question

Question at position 9 Which one of the following is not a benefit of using an international strategy?increased market size returns on investmenteconomies of scalehigher operational costs

BlackTom AI · Accepted Answer

An international strategy aims to expand a firm's activities beyond its home market to capture benefits from operating across countries.

1. Relevant knowledge points and concepts
- International strategy: a plan to sell products/services in multiple countries to exploit competitive advantages globally.
- Common benefits: increased market size (access to new customers), higher returns on investment (revenue growth and diversification), economies of scale (spreading fixed costs and increasing production volume to lower unit costs).
- Potential drawbacks: higher operational costs can occur (complexity, coordination, compliance) but these are disadvantages, not benefits.

2. Step-by-step reasoning
- Step 1: Evaluate each option against the definition of a benefit from international expansion.
- Step 2: "Increased market size" — entering foreign markets increases potential customers and sales opportunities; this is a direct benefit.
- Step 3: "Returns on investment" — with larger markets and potential market share growth, revenues and profitability can rise, improving ROI; this is a benefit.
- Step 4: "Economies of scale" — producing for a larger combined market allows fixed costs to be spread and per-unit costs to fall; this is a benefit.
- Step 5: "Higher operational costs" — internationalization often introduces additional costs (logistics, regulatory compliance, management complexity). These are costs, not benefits.

3. Calculations
- No numerical calculations are required for this conceptual question.

4. Why the correct answer is correct
"Higher operational costs" is not a benefit because it reduces profitability or increases the resources required to operate; it represents a disadvantage or trade-off of international strategy rather than an advantage.

5. Why the other options are incorrect (briefly)
- Increased market size: correct benefit — increases sales potential.
- Returns on investment: correct benefit — potential for higher profits and ROI.
- Economies of scale: correct benefit — lower per-unit costs from larger production/sales.

6. Conclusion
Therefore, the option that is not a benefit of an international strategy is "higher operational costs," which matches the provided answer.

Question at position 9 Which one of the following is not a benefit of using an international strategy?increased market size returns on investmenteconomies of scalehigher operational costs单项选择题

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