Market Expansion and International Scaling

Introduction

Growth rarely comes from selling more of the same product to the same customers. As an entrepreneurial venture gains traction, its founders must decide whether to deepen activity in the current market, serve new customer groups, enter adjacent categories, expand through new channels, or internationalize. These choices can create substantial value, but they also increase complexity, capital requirements, and exposure to institutional and cross-border risks.

Market expansion is the deliberate extension of a venture’s customer, geographic, channel, or product scope. International scaling is market expansion across national borders, involving differences in language, regulation, institutions, culture, currency, logistics, and competitive structure. The central strategic challenge is not simply identifying attractive markets. It is sequencing expansion so that each stage strengthens the venture’s capabilities for the next stage.

A sound expansion strategy therefore links five questions:

1. Which customers and problems should the venture serve?
2. Which adjacent or geographic markets are sufficiently attractive and accessible?
3. Which growth option and channel best fit the venture’s capabilities?
4. What should be standardized and what must be localized?
5. Which entry mode, timing, and risk controls are appropriate?

The best expansion decisions balance market opportunity with organizational readiness. A large market is not automatically a good market if the venture lacks regulatory knowledge, distribution access, cash reserves, or the ability to adapt its offering.

Learning Objectives

By the end of this chapter, you should be able to:

• distinguish market penetration, market development, product development, and diversification;
• evaluate segmentation and identify attractive adjacent markets;
• assess channel expansion and international entry modes;
• explain the strategic relationship between standardization and localization;
• analyze institutional differences and cross-border risks;
• construct a disciplined geographic expansion sequence; and
• apply these ideas to an entrepreneurial scaling decision.

1. The Logic of Expansion

Expansion creates growth by changing one or more dimensions of the venture’s market system. These dimensions include customer segments, geography, products, use cases, channels, and business partners. Expansion is strategically attractive when the venture possesses transferable advantages, such as a trusted brand, proprietary technology, data, operational routines, or customer relationships.

However, transferability is never automatic. A business model that works in one city may fail in another because of different purchasing power, transport infrastructure, regulation, payment habits, or social expectations. International growth therefore requires both exploitation of existing strengths and exploration of unfamiliar conditions.

A useful distinction is between replication and adaptation. Replication carries a proven business model into another setting with limited modification. Adaptation changes the value proposition, pricing, communication, operations, or governance to fit local conditions. Most successful international ventures combine both: they standardize elements that create economies of scale while adapting elements that depend on local institutions or customer behavior.

Economies and diseconomies of scale

Expansion can reduce average cost through purchasing power, shared technology, brand investment, and centralized expertise. If total cost is C(Q) for output Q, average cost is:

Here, AC is average cost per unit, C(Q) is total cost, and Q is the number of units or service transactions. The relationship is meaningful when the units are comparable and the relevant costs are measured consistently. Average cost may decline as output rises, but it can eventually increase if coordination, bureaucracy, quality failures, or logistics complexity create diseconomies of scale.

International expansion also produces scope economies. A shared platform, sales force, brand, or data infrastructure may support several products or countries. Yet scope economies depend on genuine resource sharing; simply operating in more markets does not guarantee efficiency.

2. Segmentation as the Starting Point

Segmentation divides a broad market into groups with meaningful differences in needs, behaviors, resources, or responses to marketing actions. Common bases include:

• Geographic: country, region, urbanization, climate, or infrastructure;
• Demographic or firmographic: age, income, occupation, firm size, or industry;
• Psychographic: values, lifestyle, identity, or attitudes;
• Behavioral: usage frequency, loyalty, purchase occasion, or adoption stage; and
• Needs-based: the specific problem, outcome, or job the customer seeks to accomplish.

For business-to-business ventures, segmentation commonly combines industry, firm size, geography, technology used, procurement structure, and urgency of the problem. For consumer ventures, behavioral and needs-based segmentation may be more predictive than simple demographic categories.

A segment is strategically useful only when it is sufficiently measurable, substantial, accessible, differentiable, and actionable. A very large segment may be unattractive if it is costly to reach or dominated by powerful competitors. A smaller niche may be a superior beachhead if it has urgent needs, high willingness to pay, and strong referral potential.

Segment attractiveness and strategic fit

Entrepreneurs should assess both external attractiveness and internal fit. External attractiveness includes market size, growth, profitability, competitive intensity, and regulatory feasibility. Internal fit includes the venture’s capabilities, resources, brand credibility, technology, and ability to serve the segment better than alternatives.

A simple weighted scoring model can structure, but not replace, judgment:

In this model, S is the total score, wᵢ is the weight assigned to criterion i, rᵢ is the venture’s rating for that criterion, and n is the number of criteria. Weights should sum to 1, and ratings must use the same defined scale, such as 1 to 5. The model assumes that criteria can be represented meaningfully on an approximately comparable scale. It is a screening tool, not an objective measurement of market truth.

For example, suppose a venture evaluates a neighboring country using four criteria:

The score of 3.45 out of 5 indicates a promising but imperfect opportunity. The low competition rating may require a more differentiated proposition, partnership, or staged entry rather than immediate large-scale investment.

3. Adjacent Markets and the Ansoff Framework

The Ansoff growth matrix organizes growth according to products and markets. It is not a prediction model; it is a strategic choice framework.

Market penetration

Market penetration seeks greater sales of existing products to existing markets. Methods include improved retention, increased usage, stronger promotion, better pricing, and conversion of competitor customers. It is usually the least strategically distant option because the venture already understands the customers and offering. Its limitations include market saturation, price competition, and overdependence on a narrow customer base.

Market development

Market development takes an existing product into a new customer segment, geography, or use case. Geographic expansion is a form of market development when the product remains substantially unchanged. The venture benefits from existing product knowledge but must learn about new customers, regulations, channels, and competitors.

Product development

Product development offers new or substantially modified products to existing customers. Customer relationships and distribution knowledge may reduce risk, but technical development and product-market uncertainty increase it.

Diversification

Diversification combines a new product with a new market. It can create major growth and risk. Related diversification is less risky than unrelated diversification because the venture can transfer capabilities, technology, or customer knowledge. Nevertheless, entrepreneurs should avoid describing every new feature as diversification; strategic distance depends on how different the underlying capabilities and customer economics are.

Adjacent-market analysis

An adjacent market shares one or more important characteristics with the current market, such as customers, technology, distribution, regulation, or use case. The most attractive adjacency often reuses a scarce capability while solving a closely related customer problem.

A disciplined adjacency test asks:

1. Which customer relationship or capability transfers?
2. What new knowledge must be acquired?
3. How different are buying criteria and willingness to pay?
4. Can existing channels reach the new customers?
5. What operational and regulatory changes are required?
6. What evidence would justify further investment?

Expansion should be treated as a portfolio of hypotheses. A pilot can test demand, conversion, retention, service cost, and compliance before the venture commits irreversible resources.

4. Sequencing Geographic Growth

Geographic sequencing is the order in which markets are entered. A rational sequence does not necessarily begin with the largest country. It often begins with a market that combines attractive demand, manageable distance, learning value, and feasible execution.

Important dimensions of distance include:

• Cultural distance: language, norms, values, and consumption practices;
• Administrative distance: laws, standards, taxes, political relationships, and regulatory systems;
• Geographic distance: physical distance, time zones, transport, and climate;
• Economic distance: income, cost structures, infrastructure, and purchasing power; and
• Technological distance: digital adoption, payment systems, connectivity, and technical standards.

These dimensions do not affect every venture equally. A digital service may face limited geographic distance but substantial regulatory and cultural distance. A food manufacturer may face significant logistics and product-standard challenges even when customer preferences appear similar.

A useful sequence has four stages:

1. Readiness assessment: confirm product-market fit, repeatable operations, financial capacity, leadership attention, and compliance capability.
2. Beachhead selection: select a focused segment and location where the venture can learn quickly.
3. Controlled launch: use a pilot, local partner, limited geography, or narrow product range.
4. Replication or redesign: scale only after evidence supports the assumptions; redesign when local learning reveals a material mismatch.

The sequence should include explicit stop, continue, and adapt criteria. These may involve customer acquisition cost, retention, gross margin, service-level performance, regulatory approval, and cash consumption. Metrics should be compared with a pre-agreed threshold rather than interpreted opportunistically after results appear.

5. Channel Expansion

A channel is the route through which value reaches the customer and revenue is captured. Channels may be direct, indirect, physical, digital, partner-based, or hybrid.

Direct channels

Direct sales, owned stores, websites, applications, and internal account teams provide greater control over customer data, positioning, and service. They also require investment in local marketing, support, logistics, and compliance.

Indirect channels

Distributors, agents, franchisees, marketplaces, value-added resellers, and strategic partners can provide local knowledge and access. Their disadvantages include lower margins, possible conflicts, dependence on partner performance, and reduced visibility into end customers.

Channel design questions

A channel decision should consider:

• customer acquisition cost and conversion;
• speed of market access;
• control of brand and customer experience;
• partner capability and incentives;
• working-capital requirements;
• after-sales service;
• data ownership and privacy;
• exclusivity and channel conflict; and
• reversibility if the market performs poorly.

For a channel with selling price P, variable fulfillment cost V, and channel commission kP where k is the commission rate, contribution per sale is:

Here, CM is contribution margin per sale. The formula assumes that commission is a percentage of selling price and that fixed costs are excluded. If a channel has a fixed fee, minimum order requirement, or tiered commission, those terms must be added separately.

If fixed expansion costs are F, the break-even number of sales is:

This applies only when contribution per sale is positive and constant over the relevant range. For example, if P is $100, V is $40, the commission rate is 20%, and fixed launch costs are $30,000, then CM = $100 − $40 − $20 = $40. Break-even sales equal $30,000 ÷ $40 = 750 sales. The calculation excludes taxes, financing costs, capacity constraints, and changes in demand.

6. Localization and Standardization

Localization is adaptation to local market conditions. It may involve language, packaging, product features, payment methods, customer support, pricing, advertising, contracts, or operating procedures. Standardization preserves common elements across markets to achieve consistency and economies of scale.

The appropriate balance depends on the source of customer value and the nature of institutional constraints. A core software architecture may be standardized, while language, payment integration, data storage, and customer support are localized. A consumer product may retain a global brand but adapt flavor, package size, labeling, and promotion.

A practical localization audit distinguishes four layers:

Localization can improve relevance but may increase complexity and weaken the brand. Excessive variation can fragment technology, inventory, training, and performance measurement. The objective is not maximum localization; it is economically justified adaptation.

7. Entry Modes

An entry mode determines how a venture obtains presence and control in a new market.

Exporting

Exporting serves foreign customers from the home country. It is relatively capital-light but may create transport, tariff, service, and local-market knowledge challenges. It is suitable when products are portable and local production is unnecessary.

Licensing and franchising

Licensing allows another organization to use intellectual property in return for fees or royalties. Franchising transfers a broader operating model under contractual standards. Both can accelerate expansion with less capital, but quality control, intellectual-property protection, and partner alignment are critical.

Agency and distribution agreements

Local agents or distributors provide market access and sales capability. Contracts should define territory, targets, pricing authority, customer ownership, compliance responsibilities, termination rights, and dispute resolution.

Strategic alliances and joint ventures

An alliance combines capabilities without necessarily creating a separate jointly owned entity. A joint venture creates shared ownership and may provide local legitimacy, assets, or regulatory access. It also introduces governance complexity, opportunism risk, and potential disagreement over strategy.

Acquisitions

Acquisition provides rapid access to customers, employees, licenses, facilities, and local knowledge. It requires significant capital and presents integration risks, including incompatible systems, cultural conflict, hidden liabilities, and customer disruption.

Greenfield investment

A wholly owned new operation provides maximum control but usually requires the greatest capital, time, and managerial commitment. It is most appropriate when strategic control is essential and the venture has substantial resources and market knowledge.

Entry modes can be compared using control, resource commitment, speed, risk exposure, and learning access. No mode is universally superior. An entrepreneur may begin with exporting or a partner, then increase control after validating demand.

8. Institutional Differences and Cross-Border Risk

Institutions are the formal and informal rules that shape economic behavior. Formal institutions include laws, courts, tax systems, regulators, standards, property rights, labor rules, and political authorities. Informal institutions include norms, trust relationships, business customs, social expectations, and attitudes toward authority.

Institutional differences influence both feasibility and transaction costs. A venture may face:

• licensing or product certification requirements;
• foreign ownership restrictions;
• customs and import procedures;
• employment and contractor classification rules;
• tax registration and transfer-pricing obligations;
• data protection and cross-border data-transfer restrictions;
• anti-bribery and sanctions requirements;
• intellectual-property enforcement challenges;
• consumer protection and advertising rules; and
• environmental, safety, or sector-specific standards.

Cross-border risks should be assessed across several categories:

Risk management should not be reduced to a checklist. Entrepreneurs should identify the assumptions that could invalidate the expansion thesis, estimate exposure, assign ownership, and establish response triggers. Insurance, contracts, diversification, local partnerships, and staged investment can reduce exposure, but they cannot eliminate uncertainty.

9. International Scaling and Organizational Capability

Internationalization changes the venture’s organizational design. Informal founder coordination becomes less effective as locations, employees, partners, and regulators multiply. Scaling requires repeatable processes for budgeting, compliance, data management, quality assurance, hiring, knowledge transfer, and performance review.

A venture should determine which decisions are centralized and which are local. Centralization can protect brand consistency, security, technology architecture, and capital discipline. Local autonomy can improve responsiveness to customers, regulators, and partners. A common design is to centralize principles and platforms while decentralizing market execution within defined boundaries.

Leadership capability is equally important. International managers need cultural intelligence, negotiation skills, ethical judgment, and the ability to distinguish genuine local requirements from preferences that can be standardized. Local employees should not be treated merely as implementers; they are sources of market knowledge and institutional interpretation.

Technology can support expansion through cloud systems, customer-relationship management, translation tools, analytics, digital payments, and automated compliance monitoring. Artificial intelligence may assist with demand forecasting, customer support, localization, and competitor analysis. Yet AI outputs can reproduce cultural bias, mishandle personal data, or generate legally unsuitable content. Human review, privacy safeguards, explainability, and local validation remain necessary.

10. Applied Case: TerraBite’s Regional Expansion

This is an illustrative case. TerraBite is a fictional university-founded venture selling plant-based meal kits through a subscription model in its home country. It has 12,000 active subscribers, positive contribution margin per box, and a reliable domestic cold-chain partner. Growth in the home market is slowing, and the founders are considering expansion into two neighboring countries.

Background and problem

Country A has a larger population and strong online grocery adoption, but strict food labeling requirements and several established meal-kit competitors. Country B is smaller, has fewer direct competitors, and shares a language with TerraBite’s home market, but refrigerated delivery infrastructure is less reliable.

The founders initially favor Country A because of its size. However, the board asks whether the largest market is also the best learning market and whether the venture can finance simultaneous entry.

Analysis

TerraBite evaluates five criteria using a 1-to-5 scale: demand, logistics feasibility, regulatory accessibility, competitive intensity, and learning value. The team assigns weights based on its current strategic priorities. Country B scores higher on language similarity and competition, but lower on logistics. Country A scores higher on demand but requires more product labeling work and marketing expenditure.

The analysis also reveals that the existing domestic channel cannot simply be copied. TerraBite’s direct subscription model depends on predictable weekly delivery. In Country B, a local refrigerated distributor may be necessary. This would reduce margin and customer data access but improve delivery reliability.

Approach and solution

TerraBite adopts a staged strategy:

1. launch a 12-week pilot in one metropolitan area of Country B;
2. offer only three best-selling meal kits rather than the entire range;
3. partner with a refrigerated distributor under a non-exclusive agreement;
4. localize packaging, nutritional claims, payment options, and customer support;
5. retain centralized control over recipes, food-safety standards, brand principles, and data-security requirements;
6. define continuation thresholds for repeat purchase, contribution margin, delivery reliability, and complaint rates; and
7. delay Country A until the pilot produces evidence about the transferable economics of the model.

Suppose the pilot requires fixed launch costs of $48,000. The average selling price is $72, variable food and packing cost is $30, delivery cost is $12, and the distributor receives 15% of selling price, or $10.80. Contribution per box is therefore $72 − $30 − $12 − $10.80 = $19.20. The break-even volume is $48,000 ÷ $19.20 = 2,500 boxes, assuming these values remain stable and fixed costs are correctly specified.

The team sets a higher internal target than break-even because break-even alone does not prove strategic attractiveness. It also requires at least 45% of first-time customers to reorder within the pilot period, delivery success above 96%, and no unresolved regulatory non-compliance.

Outcome

At the end of the fictional pilot, demand is strong, but delivery reliability is 92%, below the threshold. TerraBite does not abandon the market. Instead, it renegotiates delivery service levels, adds a second logistics provider, and narrows delivery days to improve route density. The pilot demonstrates that Country B is not yet ready for broad scaling but is a valuable learning market.

The board approves a second controlled phase and postpones Country A. This decision sacrifices short-term visibility in the larger market but protects cash and improves organizational learning.

Learning points

The case illustrates that:

• market size must be evaluated alongside accessibility and capability fit;
• a channel partner can solve an operational problem while creating margin and data trade-offs;
• localization includes compliance and operations, not merely translation;
• break-even analysis supports discipline but does not replace strategic metrics; and
• sequencing can convert uncertainty into learning before major commitment.

11. Ethical and Governance Considerations

International growth creates responsibilities toward customers, workers, partners, communities, and the environment. Entrepreneurs must avoid exploiting weak enforcement, misleading consumers through culturally inappropriate claims, or transferring harmful labor and environmental practices to lower-cost locations.

Important governance practices include transparent product claims, fair treatment of workers and suppliers, anti-corruption controls, responsible tax behavior, privacy protection, accessible customer support, and mechanisms for reporting misconduct. Due diligence should cover not only direct partners but also significant subcontractors and supply-chain risks.

Data governance is particularly important for digital ventures. The venture should identify what data it collects, why it is needed, where it is stored, who can access it, how long it is retained, and how customers can exercise their rights. Compliance obligations vary by jurisdiction, so legal advice is appropriate before launch.

12. Best-Practice Expansion Process

A practical process for entrepreneurs is:

1. document the proven business model and the assumptions behind it;
2. segment the target market by needs and purchasing behavior;
3. screen adjacent and geographic markets for attractiveness and fit;
4. map institutional, channel, and operational differences;
5. select a beachhead and define a narrow pilot;
6. choose an entry mode consistent with capital and control needs;
7. localize only where customer value, compliance, or execution requires it;
8. establish unit economics, risk indicators, and stop criteria;
9. capture learning in repeatable playbooks; and
10. scale, adapt, or exit based on evidence.

The process should be iterative. Market research reduces uncertainty but cannot fully substitute for real customer behavior. Pilots are useful when they test the economics and capabilities that matter for later scale, rather than merely generating publicity.

Challenges and Limitations

Expansion frameworks have limitations. Market scores may create false precision because ratings and weights reflect managerial judgment. The Ansoff matrix classifies strategic direction but does not specify implementation requirements. Entry-mode comparisons may overlook power relationships and partner behavior. Pilot results may not generalize to a national market, especially when local customers are unusually early adopters.

Forecasting is also vulnerable to optimism bias. Founders may overestimate demand, underestimate localization costs, or interpret weak results as temporary without evidence. Conversely, excessive caution can prevent a venture from learning quickly enough. The appropriate response is disciplined experimentation: make assumptions explicit, invest in stages, measure leading and lagging indicators, and revise decisions when evidence changes.

Chapter Summary

Market expansion is a strategic process of extending a venture’s customers, products, channels, or geography. The Ansoff framework distinguishes market penetration, market development, product development, and diversification, each involving different levels of uncertainty. Segmentation identifies groups with distinct needs and helps entrepreneurs choose focused beachheads.

Geographic sequencing should consider cultural, administrative, geographic, economic, and technological distance, as well as market attractiveness and organizational readiness. Channel choices involve trade-offs among control, speed, margin, customer data, and local access. Localization should adapt the elements that depend on local customers, institutions, or operations while standardizing the elements that create scale and consistency.

Entry modes range from exporting and partnerships to acquisitions and wholly owned operations. Institutional differences create legal, political, currency, operational, partner, reputational, and data risks. Staged pilots, explicit thresholds, sound governance, and organizational learning allow entrepreneurs to scale internationally without committing excessive resources before the business model is transferable.

Key Terms

Segmentation: Dividing a market into groups with meaningful differences in needs or behavior.

Target segment: The customer group selected for focused service and investment.

Adjacent market: A market sharing transferable customers, capabilities, technology, channels, or use cases with the current market.

Market penetration: Increasing sales of existing products to existing markets.

Market development: Taking existing products into new markets or customer segments.

Product development: Offering new products to existing markets.

Diversification: Entering a new market with a new product.

Beachhead market: A focused initial market used to establish presence and learn.

Localization: Adapting an offering or operating system to local conditions.

Standardization: Maintaining common features, processes, or principles across markets.

Channel: The route through which a product or service reaches customers.

Entry mode: The organizational method used to enter a foreign market.

Institution: A formal or informal rule shaping economic behavior.

Cultural distance: Differences in values, norms, language, and social practices.

Transaction cost: The cost of searching, negotiating, monitoring, and enforcing exchanges.

Contribution margin: Selling price minus relevant variable costs per sale.

Pilot: A limited launch designed to test assumptions before broader investment.

Localization audit: A systematic review of what must be adapted for a market.

Cross-border risk: Potential loss arising from international market, legal, political, currency, operational, or cultural conditions.

Organizational readiness: The venture’s capacity, resources, systems, and leadership ability to execute expansion.

Review Questions

5 Short Answer Questions

1. What is the difference between market development and product development?
2. Identify four bases of market segmentation.
3. Why might a smaller country be selected before a larger country for international entry?
4. State two advantages and two disadvantages of using a local distributor.
5. What is the purpose of a controlled market-entry pilot?

5 Long Answer Questions

1. Explain the Ansoff growth matrix and evaluate the risks associated with each growth option.
2. Discuss how cultural, administrative, geographic, economic, and technological distance affect geographic sequencing.
3. Compare exporting, licensing, joint ventures, acquisitions, and greenfield investment as international entry modes.
4. Explain how a venture can balance standardization and localization in an international expansion.
5. Analyze the role of institutional differences in creating cross-border risk and propose appropriate governance responses.

3 Analytical / Application Questions

1. A venture has a successful domestic subscription model but limited cash. It is considering a large, competitive market and a smaller market with similar language and weaker logistics. Construct a decision process for selecting and sequencing the markets.
2. A foreign distributor offers rapid access but requests exclusivity and control over customer data. Analyze the strategic, financial, legal, and relationship implications before signing the agreement.
3. Design a 12-week international pilot for a digital or physical venture of your choice. Specify the target segment, entry mode, localization decisions, performance metrics, risk controls, and criteria for scaling or stopping.

Multiple Choice Questions with Answers

Question 1

Which Ansoff growth option involves selling an existing product in a new geographic market?

A. Market penetration

B. Market development

C. Product development

D. Unrelated diversification

Correct Answer: B. Market development

Question 2

A venture scores a market using weights that sum to 1.0. What is the main purpose of this weighted scoring model?

A. To replace all managerial judgment with an objective forecast

B. To calculate exact future profits

C. To structure comparison across selected criteria

D. To eliminate uncertainty from market entry

Correct Answer: C. To structure comparison across selected criteria

Question 3

Which channel generally provides the venture with the greatest direct control over customer data and experience?

A. An owned website

B. An independent distributor

C. A wholesale agent

D. A franchised retailer

Correct Answer: A. An owned website

Question 4

A product sells for $100, has variable cost of $40, and is sold through a channel charging a 20% commission. What is the contribution per sale before fixed costs?

A. $20

B. $40

C. $60

D. $80

Correct Answer: B. $40

Question 5

Which statement best describes localization?

A. Removing all common elements across countries

B. Adapting an offering or operations to local conditions

C. Using one identical marketing campaign everywhere

D. Entering a market only through acquisition

Correct Answer: B. Adapting an offering or operations to local conditions

Question 6

Which entry mode normally gives the venture the highest ownership control but also requires substantial capital and commitment?

A. Exporting

B. Licensing

C. Greenfield investment

D. Independent agency

Correct Answer: C. Greenfield investment

Question 7

Which of the following is an informal institution?

A. A national tax statute

B. A product-certification rule

C. A customs procedure

D. A local norm concerning business trust

Correct Answer: D. A local norm concerning business trust

Question 8

A pilot has fixed costs of $30,000 and contribution margin of $40 per sale. What is its break-even volume?

A. 400 sales

B. 600 sales

C. 750 sales

D. 1,200 sales

Correct Answer: C. 750 sales

Question 9

Why might a venture use a beachhead market?

A. To test and learn in a focused market before broader expansion

B. To avoid measuring customer behavior

C. To guarantee immediate national scale

D. To eliminate the need for local adaptation

Correct Answer: A. To test and learn in a focused market before broader expansion

Question 10

Which is an appropriate reason to standardize part of an international business model?

A. To ignore local regulation

B. To obtain economies of scale and maintain consistency

C. To prevent all local employees from making decisions

D. To avoid collecting market information

Correct Answer: B. To obtain economies of scale and maintain consistency