Refer to the Scenario Below to Answer the Following Question(s)

question 154

Multiple Choice

Refer to the scenario below to answer the following question(s) .
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-What did Selman & Saks hope to gain by entering the French market?

• A) access to new consumer markets
• B) access to less expensive labor
• C) access to less expensive materials
• D) access to foreign investment incentives
• E) the ability to offset domestic economic cycles

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Definitions:

Finalize Deal

To complete the negotiations and formal agreements of a business transaction, making it official and binding.

Asset Sale

The process of selling off individual assets of a company, such as real estate, machinery, or intellectual property, rather than transferring ownership of the company itself.

Asset Purchases

The acquisition of company assets, such as property, plant, and equipment, rather than the company's stock.

Liabilities

Financial obligations or debts that a company or an individual owes to others.