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:

Enable

To make a device or system operational; to allow a process or function to proceed.

Permanent Contact

A type of electrical contact that remains closed to ensure a constant flow of electricity, typically used in switches or relays.

Normally Open

A term describing an electrical switch or relay contact that is open (not conducting) when in its default state, closing only in response to a control action.

Normally Closed

A term used to describe a switch or circuit condition where the default state is closed, allowing current to flow unless actuated to open.