Which of the Following Is NOT a Typical Option That

question 134

Multiple Choice

Which of the following is NOT a typical option that companies have to consider to tailor their strategy to fit the circumstances of emerging country markets?

• A) Prepare to compete on the basis of low price.
• B) Be prepared to modify 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) Try to change the local market to better match the way the company does business elsewhere.
• D) Develop a strategy for the short-term and forget about a long-term strategy because conditions in emerging country markets change so rapidly.
• E) Stay away from 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:

Parent Company

A company that holds a controlling interest in another company, making the latter its subsidiary.

Financial Statements

Papers that offer a summary of a corporation's financial status, featuring the balance sheet, income statement, and cash flow statement.

Consolidating

The process of combining financial statements from different entities within a single corporate group to provide a single set of financial statements.

Foreign Subsidiary

A company owned or controlled by another company (the parent company) but located and operating in a foreign country.