Companies generally decide to expand globally to increase their:

• A. market share
• B. domestic competition
• C. production costs
• D. regulatory constraints

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of 'market share' in microeconomics. Market share refers to the portion of a market controlled by a particular company or product. Expanding globally allows companies to access new customers and increase this share.
2. Step 2: Consider why companies would want to expand beyond their domestic market. Typically, this is to reach more consumers, increase sales, and gain a competitive advantage internationally.
3. Step 3: Analyze the other options: 'domestic competition' refers to rivals within the home country, which expansion does not directly increase; 'production costs' usually increase or decrease depending on location but are not the primary reason for expansion; 'regulatory constraints' are rules companies must follow and are generally a challenge, not a motivation for expansion.
4. Step 4: Conclude that the primary motivation for global expansion is to increase market share by entering new markets and attracting more customers.
5. Step 5: Summarize that companies expand globally mainly to increase their market share, which aligns with the correct answer choice.