Fembooks Bookstore Sells Books Only Over the Internet

question 254

Multiple Choice

Fembooks Bookstore sells books only over the Internet. It has established an excellent reputation for finding out-of-print and hard-to-find books of interest to women. The CEO of Fembooks is considering going global with the business, since it is already established on the Internet. The vice-president of Fembooks argues that they will encounter too many difficulties in taking the business global via the Internet. The president argues that the benefits would be worth the problems encountered. Which of the following statements, if true, would support the argument of the vice-president against going global?

• A) While English is the dominant language of the Internet, more local traffic would be generated by webpages in the local language.
• B) Being a niche business, going global over the Internet would not put a huge strain on existing personnel.
• C) Shipping books overseas could easily be handled by UPS, FedEx, or air mail.
• D) Sales predictions for overseas expansion anticipate an initial 30 percent increase, then tapering off to a 20 percent increase annually.
• E) Increased Internet advertising costs would be a fairly inexpensive investment to increase business on a global basis.

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Definitions:

Routes

Paths or courses determined for the transportation of goods or people from one location to another.

Distribution Network

The interconnected group of storage facilities and transportation systems that a company uses to get products from the manufacturer to the end consumer.

Raw Material

Basic materials that are processed or transformed into components or products in manufacturing and production processes.

Manufacturing Plants

Facilities where goods are produced in large quantities through combining and processing raw materials using various machines and labor.