Using Domestic Plants as a Production Base for Exporting Goods

question 27

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) can be 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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Definitions:

Moderate-Term Assignment

A Moderate-Term Assignment refers to a project or task with a timeline that is neither short nor long-term, often ranging from several months to a couple of years.

Expatriate

An individual who lives and/or works in a country other than their country of citizenship, often temporarily and for professional reasons.

International Commuters

Employees who live in one country but work in another, regularly traveling between the two for their job.

Adaptive IHRM Approach

HRM systems for foreign subsidiaries that will be consistent with the local economic, political, and legal environment.