A Firm May Narrow Its Focus to a Specific Region

question 118

Multiple Choice

A firm may narrow its focus to a specific region of the world:

• A) because that market is most different from its domestic market and so represents an unexploited "greenfield opportunity" for its products.
• B) in order to obtain greater economies of scale.
• C) so that it can better understand the cultures, legal and social norms, and other factors that are important for effective competition in those markets.
• D) to take advantage of limited protections of intellectual property so that it can manufacture innovative products without restrictions.

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Definitions:

Predominant Factor Test

A legal doctrine used to classify a transaction within the framework of the Uniform Commercial Code (UCC) by determining the main purpose of the contract.

Liberally Administered

A principle or policy applied in a manner that is flexible, generous, or not strictly in accordance with strict rules or formalities.

Aggrieved Party

An individual or entity that has suffered legal wrong or harm, and who is entitled to bring a lawsuit against the party responsible for that harm.

Modified Contract

An agreement where the original terms have been altered or amended by the parties involved, following mutual consent.