Intel, a U.S. firm that makes semiconductor chips, has an enormous production capacity, providing more than half of the world’s chips. In order to optimize production capacity, Intel sells 27 percent of its output within the U.S. and 73 percent to foreign buyers. Which reason caused Intel to go abroad?

a. The need to minimize compliance cost
b. The need to expand market share
c. The need to acquire essential raw materials
d. The need to minimize production efficiency
e. The need to pursue a politically safe business environment

1 answer

The most appropriate reason among the options provided for Intel's decision to sell a significant portion of its output to foreign buyers would be:

b. The need to expand market share

By selling 73 percent of its output to foreign buyers, Intel is actively seeking to increase its market reach and share beyond the domestic U.S. market, which allows them to leverage their production capacity and drive higher sales globally.