Question

According to the passage, which of the following is true of the traditional routes to global expansion?

• A. They have been supplanted in most service industries by alternative routes.
• B. They are less attractive to travel agencies since deregulation of the airlines.
• C. They may represent the most cost-effective means for a travel agency to globalize.
• D. They may be unsuitable for service agencies that are attempting to globalize.
• E. They are most likely to succeed in markets that are not actively growing.

Answer 1

The correct option is D They may be unsuitable for service agencies that are attempting to globalize.

Traditional routes to global expansion involve either acquisition of an overseas firm or trying to grow organically into international markets. The problem with the former approach is it is usually very costly and with the second approach it does not work with countries where growth might be low. Hence we can select option (d) as the answer.