What Factors Should Be Considered in Determining Whether a Firm

question 51

Essay

What factors should be considered in determining whether a firm should sell to buyers in a foreign country by exporting from its home country or by setting up local production in the foreign country to produce the products that are sold to foreign consumers? When identifying these factors, clearly explain how and why they push the decision toward one or the other of the two available choices.

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Definitions:

Goal

An objective or outcome that a person or organization aims to achieve within a certain timeframe.

Cultural Differences

Variations in the norms, values, beliefs, and practices among different groups of people based on ethnicity, nationality, religion, or social groups.

Older Female

Refers to women who are in the later stages of their life, often considered to be of an age where they are post-menopausal.

Asian Descent

Referring to individuals whose ancestors originated from East Asia, South Asia, Southeast Asia, or the Indian subcontinent.