If the economic value creation of international expansion is negative, a firm should Blank______.Multiple choice question.recalculate the formula so the value creation appears positivestill expand internationally but only to low-cost marketscontinue its expansion plans if management desires itnot expand internationally
Question
If the economic value creation of international expansion is negative, a firm should Blank______.Multiple choice question.recalculate the formula so the value creation appears positivestill expand internationally but only to low-cost marketscontinue its expansion plans if management desires itnot expand internationally
Solution
The correct answer is: not expand internationally. If the economic value creation of international expansion is negative, it means that the costs of expansion are greater than the benefits. Therefore, it would not be in the firm's best interest to proceed with the expansion.
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