Companies seek to access international markets as a means of:

• A. avoiding the need for product innovation
• B. expanding their customer base and increasing sales revenue
• C. reducing domestic competition by limiting supply
• D. decreasing their exposure to exchange rate fluctuations

Answer: (B)

Verified step by step guidance

1. Understand the motivation behind companies seeking international markets. Companies typically look to expand their operations beyond domestic borders to achieve growth objectives.
2. Recognize that accessing international markets allows companies to reach more customers, which can lead to increased sales revenue. This is because the potential customer base is larger than in a single domestic market.
3. Consider other options given, such as avoiding product innovation or reducing domestic competition. Evaluate whether these are primary reasons for international expansion. Generally, companies still need to innovate to compete globally, and international expansion does not necessarily reduce domestic competition.
4. Think about exposure to exchange rate fluctuations. While international operations do expose companies to currency risk, this is usually a challenge rather than a reason to enter foreign markets.
5. Conclude that the main reason companies seek international markets is to expand their customer base and increase sales revenue, which aligns with the fundamental goal of business growth.