Lincoln can expand the size of their potential market by moving into international markets. Following an international strategy is a particularly attractive option to firm competing in domestic markets that have limited growth opportunities. The size of a particular international market also affects a firm's willingness to invest in R&D to build advantages in that market. Larger markets usually offer higher potential returns and thus generally pose less risk for a firm's investments. The strength of the science base in the country in question also can affect a firm's foreign R&D investments. Large market may be crucial for earning a return on significant investments, such as plant and capital equipment or R&D. Therefore, most R&D-intensive industries are international. When Lincoln expands its markets, they may be able to enjoy economies of scale, particularly in their manufacturing operations. …
