Leo Inc, a U

Multiple Choice

Leo Inc., a U.S.-based firm, decides to enter a foreign market through offshoring. Which of the following is likely to be the primary reason for Leo to enter the new market?

A) The new market is ideal to dump Leo's excess products that cannot be sold in the United States.
B) The new market has facilities for research and development that are not available in the United States.
C) Leo is likely to have reached saturation in terms of sales growth in the domestic market.
D) Labor and raw materials are available at a lower cost in the new market than in the United States.