A Company Can Increase Its Growth Rate by Taking Goods

question 51

Multiple Choice

A company can increase its growth rate by taking goods or services developed at home and selling them internationally. The returns from such a strategy are likely to be greater if

• A) the product is already being offered by local companies in the nations that the company enters.
• B) the product is a generic product that requires little differentiation.
• C) indigenous competitors in the nations that the company enters lack comparable products.
• D) there is a high inflation in the nations that the company enters.
• E) the product is perceived to be very costly in the home country of the company.

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Definitions:

Stability

The quality of being stable; having consistency or permanence, and resistance to change or deterioration over time.

Continuity

The unbroken and consistent existence or operation of something over a period of time.

Peer Influence

The impact that peers, or individuals of similar age or status, have on each other's attitudes, values, and behaviors.

Decreases

A reduction in quantity, size, or degree.