Market-Seeking FDI Attempts to Secure Market Share and Sales Growth

question 38

Multiple Choice

Market-seeking FDI attempts to secure market share and sales growth in the target foreign market. Apart from market size and the prospects for market growth, the reasons for market-seeking FDI include situations in which

• A) the firm's main suppliers or customers have set up foreign producing facilities abroad and the firm needs to follow them overseas.
• B) the firm's products need to be adapted to local tastes or needs, and to indigenous resources and capabilities.
• C) the firm considers it necessary, as part of its global production and marketing strategy, to maintain a physical presence in the leading markets served by its competitors.
• D) all of the above.

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Definitions:

Discontinued Product

A product that a company has decided to stop producing and selling, often due to declining sales or obsolescence.

Scrap Price

The amount of money that can be received for selling waste materials or remnants from production processes.

Idle Capacity

The unused portion of a company’s productive capacity, such as machinery or labor, that could be used for production but currently isn't.

Special Project

A temporary endeavor with a specific goal and timeline, which may require resources outside of the company's normal work scope.