Which is a direct benefit of global expansion for MNCs?

Which is a direct benefit of global expansion for MNCs?

• A. Access to new markets
• B. Increased regulatory burdens
• C. Higher tariffs
• D. Reduced supply diversity

Answer: (A)

Expanding globally directly increases the pool of potential customers beyond the home market, which boosts sales opportunities and revenue. With more markets to serve, a company can achieve higher volumes, spread fixed costs over a larger output, and pursue economies of scale. The other options describe costs or constraints—more regulatory overhead, higher tariffs, and less diverse supply—not direct benefits of expanding across borders. So the main payoff from global expansion is access to new markets.

Expanding globally directly increases the pool of potential customers beyond the home market, which boosts sales opportunities and revenue. With more markets to serve, a company can achieve higher volumes, spread fixed costs over a larger output, and pursue economies of scale. The other options describe costs or constraints—more regulatory overhead, higher tariffs, and less diverse supply—not direct benefits of expanding across borders. So the main payoff from global expansion is access to new markets.