In Expanding into Foreign Markets, a Company Can Strive to Gain

question 23

Multiple Choice

In expanding into foreign markets, a company can strive to gain competitive advantage (or offset domestic disadvantages) by

• A)building a state-of-the-art facility to fully capture scale economies via an export strategy.
• B)using export, licensing, or franchising strategies so as to minimize risk and capital investment.
• C)locating buyer-related activities in all countries where it sells its product.
• D)dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets.
• E)avoiding the use of strategies that entail coordinating its domestic strategic moves with its strategic moves in the various foreign markets it enters.

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Definitions:

Somatic System

A part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions and drives, such as fear, pleasure, and anger.

Autonomic System

A part of the peripheral nervous system that controls bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Microelectrode Techniques

Scientific methods involving the use of tiny electrodes to measure electrical activity in single cells or small groups of cells, often used in neuroscience research.