Multiple choice

Which of the following is a push factor influencing the internationalisation of a company?

  1. Difficulty in finding skilled staff in the home country

  2. The need to be close to key resources

  3. Low-cost labour in other countries

  4. Financial incentives from governments in emerging markets
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Push factors force a company to look into new markets because their current markets are showing signs of problems. Pull factors lure a company to enter a market. Push factors: Saturation in domestic markets Economic difficulty in domestic markets End of product life cycle at home Excess capacity Risk diversification

Pull factors: Attractive overseas markets Increase sales Greater economies of scale Extension of product life cycle A competitive advantage Personal ambition

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