Lamp Shade Imports (Scenario)

question 43

Multiple Choice

Lamp Shade Imports (Scenario)
The ABC Lamp Company is an SME that designs and manufactures high quality lamps that are sold in high-end furniture stores across Canada and the United States. ABC imports lamp shades from Asia where costs are lower than in North America. ABC has received a large order from a hotel chain that wants to purchase 5,000 lamps in the next three months, and ABC will need to import corresponding lamp shades. ABC recently ended a relationship with a Chinese supplier due to the poor quality of shades that were shipped. ABC managers are seeking a new Asian supplier that can fill the hotel lamp order.
-Which of the following factors should be considered by ABC when trying to obtain financing for export sales?

• A) Where is the manufacturing facility of the Asian exporter located?
• B) Does the Asian lamp shade supplier sell to ABC's competitors?
• C) What is the creditworthiness of the Asian lamp shade exporter?
• D) At what bank does the Asian lamp shade supplier do business?

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Definitions:

High Market Growth Rates

Periods when a particular market or industry experiences significantly higher than average increases in sales or revenue.

Relative Market Shares

A metric comparing a company's market share to that of its largest competitor, indicating competitiveness in the market.

Stars

In a business context, products or business units that have a large market share in a fast-growing industry, according to the BCG matrix.

High Market Growth Rates

Describes markets that are expanding rapidly, with increasing sales and consumer interest, often providing lucrative opportunities for businesses.