MekTech Is a U

question 8

Multiple Choice

MekTech is a U.S.-based electronics company. It is planning to introduce a new home theatre system in a foreign country. It has identified Mexico and Canada to be the easiest foreign markets to enter; however, it only wants to launch the system in one country. Which of the following parameters should the company most likely consider to determine the growth potential of these foreign markets?

• A) Purchasing power
• B) Political uncertainty
• C) Expropriation potential
• D) Sociocultural differences

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Definitions:

Authority

Claiming and exercising power as justified by law or custom of tradition.

Legitimacy

The general belief that a rule, institution, or leader has the right to govern or command, often based on law, custom, or consent.

Chiefdoms

Socio-political organizations in which authority is centralized in a single leader who wields economic, political, and ceremonial control, often hereditary.

Extremely Unstable

A situation or condition that is highly unpredictable and may change abruptly.