Two Marketing Students, Fiona and Sayid, Discuss the Strategies of Star

question 53

Multiple Choice

Two marketing students, Fiona and Sayid, discuss the strategies of Star Seven Inc., a leading firm in the United States. Fiona believes that Star Seven entered a foreign market for the sake of efficiency, while Sayid argues that it entered for the purpose of expanding knowledge. Which of the following weakens Fiona's argument?

• A)Star Seven aims to spread the costs of investments in plant and equipment across more sales in the new market.
• B)Star Seven aims to serve multiple types of customers in the new market to gain new insights about its products.
• C)Star Seven aims to sell products produced in excess at lower prices in the new market.
• D)Star Seven aims to outsource some of its functions to reduce the labor and production costs.

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Definitions:

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus through the umbilical cord.

Incubator

A device used to maintain optimal environmental conditions for the growth and development of premature babies, or for cultivating microbiological cultures.

Protective Container

An object designed to shield its contents from damage, contamination, or exposure to external harmful elements.

Creche

A nursery where babies and young children are cared for during the working day.