Many franchises are expanding internationally because:

• A. international expansion always guarantees higher profits
• B. labor costs are always higher in foreign countries
• C. they seek to access new markets and increase their customer base
• D. domestic regulations prohibit franchise operations

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of international expansion for franchises. Franchises expand internationally primarily to grow their business by reaching new customers and markets.
2. Step 2: Evaluate the given options by considering economic principles such as market access, cost structures, and regulatory environments.
3. Step 3: Recognize that international expansion does not always guarantee higher profits because of risks like unfamiliar markets and costs.
4. Step 4: Note that labor costs can be either higher or lower depending on the country, so this is not a universal reason.
5. Step 5: Conclude that the main motivation for international expansion is to access new markets and increase the customer base, which aligns with the correct answer.