A Canadian Computer Company Had Difficulties When It First Entered

question 60

Multiple Choice

A Canadian computer company had difficulties when it first entered the Japanese market. Some of its computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be an insignificant problem in Canada, it was certainly a cause of concern in quality-conscious Japan. Which component of the Product Component Model should the company concentrate on to fix this problem?

• A) core
• B) support services
• C) packaging
• D) functional
• E) design

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Definitions:

Forward Rate

The interest rate agreed today for a loan to be made in the future.

Arbitrage Opportunities

Situations in which it is possible to simultaneously buy and sell assets in different markets or in different forms to benefit from price differences without risk.

Nominal Risk-free Rate

The interest rate on a risk-free security that does not account for inflation.

Purchasing Power Parity

An economic theory that states that the exchange rate between two currencies is equal to the ratio of the currencies' respective purchasing power.