Makes Scents Inc

question 62

Multiple Choice

Makes Scents Inc., a company that manufactures and sells premium perfumes, is pursuing an international strategy. PriceSmasher Inc., a supermarket chain, follows a multidomestic strategy. Which of the following statements is most likely true of this scenario?

• A) Makes Scents Inc. will sell the same products in both domestic and foreign markets, whereas PriceSmasher Inc. will customize its product offerings to suit local requirements.
• B) Makes Scents Inc. will pursue a differentiation strategy at the business level, whereas PriceSmasher Inc. will pursue a cost-leadership strategy at the business level.
• C) Makes Scents Inc. will be better protected from exchange rate fluctuations when compared to PriceSmasher Inc.
• D) Makes Scents Inc. will not be able to use its home-based core competencies in foreign markets as much as PriceSmasher Inc. will.

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Definitions:

Sporadic Pairing

Irregular or occasional associations between two factors or variables, not following a predictable pattern.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any need for learning.

Vicarious Response

A reaction experienced in response to observing another person's experiences or emotions.

Learning

The acquisition of knowledge, skills, values, or behaviors through study, experience, or teaching.