Companies opt to expand into foreign markets in order to:

• A. avoid all government regulations
• B. increase their customer base and access new sources of revenue
• C. reduce competition in their domestic market
• D. eliminate the need for marketing strategies

Answer: (B)

Verified step by step guidance

1. Understand the motivation behind companies expanding into foreign markets by considering the benefits and challenges of international business.
2. Recognize that avoiding all government regulations is unrealistic because foreign markets have their own regulatory environments that companies must comply with.
3. Consider that expanding into foreign markets allows companies to increase their customer base by reaching new consumers beyond their domestic market.
4. Acknowledge that accessing new sources of revenue is a key incentive, as foreign markets can offer additional sales opportunities and growth potential.
5. Note that reducing competition domestically or eliminating marketing strategies are not primary reasons for international expansion, as competition often exists globally and marketing remains essential in all markets.