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Lynn Bernerd, Inc. Lynn Bernerd, Inc., Manufactures and Sells Reclining Furniture. the Company

question 108

Multiple Choice

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furniture. The company currently operates in the United States but wishes to expand overseas. The company managers have been contemplating the best way to enter the foreign market. At first, the management felt it would be in the company's best interest to let a foreign company use its product and brand in exchange for a royalty. The managers recognized, however, that before the company decided on its foreign strategy it needed to think through all the steps required to enter an international market. As such, the managers believed they needed to consult with some type of agency to help their firm compete more effectively in the global marketplace.
After all the research was completed, the senior managers realized that they wanted to export their product. The managers decided that the transport carrier would notify them when the merchandise was shipped. This would avoid any confusion about lost shipments and ensure better communication with the receiving parties.
-Refer to Lynn Bernerd, Inc. Initially, the managers believed that ____ would be the best option for entering the foreign market.

Definitions:

Command Systems

Economic systems where decisions about production, investment, and distribution are regulated by a central authority or government rather than market forces.

Consumer Sovereignty

The principle that consumer preferences and choices dictate the production and sale of goods and services in an economy.

Circular Flow Model

An economic model that illustrates the flow of goods and services and money between sectors of the economy.

Income

The monetary payment received for goods or services, or the profit earned on investments, over a period of time, which can influence economic behavior and standard of living.