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Refer to the Passage Below to Answer the Following Questions

question 19

Multiple Choice

Refer to the passage below to answer the following questions.
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered just whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Though seeing first-hand the benefits Wellman found with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, the Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-Which of the following best explains why Selman & Saks chose exporting as its entry method to the French market?

Definitions:

Merged Firm

A company that exists after two or more companies have combined into one through a merger or acquisition.

Acquisition

The process where one company purchases most or all of another company's shares to gain control over it.

Acquisition

The process of acquiring control of another company or business entity through purchase or merger.

Shares Outstanding

The total number of shares of a company that have been issued and are currently owned by shareholders.