RedLeaf Goods and Co

question 8

Multiple Choice

RedLeaf Goods and Co. has been producing and supplying its designer footwear in its home country for almost a decade. It has not expanded internationally because of various reasons. However, when Linda Goodmen joins the company as its chief operating officer, she calls the members of the management for a meeting and suggests that the company should enter foreign markets. The management votes for export as an entry mode; however, Linda is not thoroughly convinced by the idea as she sees a disadvantage in using export as an entry mode among the other options. Which of the following is most likely the disadvantage that Linda foresees in this scenario?

• A) The company will need to make a massive infrastructure investment.
• B) The company will not be able to function with flexibility when sales go up or down.
• C) The company will not be able to quickly move down the learning curve.
• D) The company will have to pay for import tariffs.

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Definitions:

Committee

A group of people appointed for a specific function, typically consisting of members of a larger group.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Majority Opinion

The viewpoint held by the greater number of members within a group, often reflected in decision-making processes.

Unpopular Opinions

Views or beliefs that are contrary to the mainstream or accepted consensus, often provoking discussion or debate.