Tailoring a Strategy to Fit the Circumstances of Emerging Country

question 77

Multiple Choice

Tailoring a strategy to fit the circumstances of emerging country markets does not typically involve

• A)competing on the basis of low price.
• B)modifying aspects of the company's business model to accommodate local circumstances (but not so much that the company loses the advantage of global scale and global branding).
• C)transforming the local market to better match the way the company does business elsewhere.
• D)developing a strategy for the short-term and forget about a long-term strategy because conditions in emerging country markets change so rapidly.
• E)avoiding those emerging markets where it is impractical or uneconomic to modify the company's business model to accommodate local circumstances.

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Definitions:

Loss On Redemption

The financial loss incurred when a debt instrument, such as a bond, is repaid before its maturity date.

Effective-Interest Method

A method of calculating the amortized cost of a bond and the amount of interest expense over its relevant period.

Amortization

The process of spreading out the cost of an intangible asset over its useful life or the repayment of loan principal over time.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, reflected in its income statement.