Using Domestic Plants as a Production Base for Exporting Goods

question 88

Multiple Choice

Using domestic plants as a production base for exporting goods to selected foreign country markets:

• A) can be an excellent initial strategy to test the international waters and learn if attractive market positions can be established in foreign markets.
• B) can be a competitively successful strategy when a company is focusing on vacant market niches in each foreign country and does not have to compete head-to-head against strong host country competitors.
• C) can be a powerful strategy since a company can maintain a one-country production base allowing it to capitalize on company competencies and capabilities.
• D) is usually a weak strategy when competitors are pursuing multi-country strategies.
• E) can be a powerful strategy because a company is not vulnerable to fluctuating exchange rates.

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