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:

Ml

A milliliter is a metric system volume unit that is equal to 1/1000th of a liter.

Gram

A unit of measurement for mass that is exactly one thousandth part of a kilogram.

Basic Unit

The fundamental, smallest, or simplest quantity or component in a system or set of measurements often used as a standard of measurement.

Metric System

A measurement system that uses the meter for length, liter for volume, and gram for weight or mass, all based on decimal calculations.