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:

Veins

Blood vessels that carry deoxygenated blood towards the heart, except for the pulmonary and umbilical veins.

Coelacanths

Coelacanths are rare and ancient fish known for their lobed fins, which were once thought to be extinct until living specimens were discovered in 1938.

Lungfishes

A group of freshwater fish known for their ability to breathe air using lungs in addition to gills, found in Africa, South America, and Australia.

Tetrapod

A vertebrate animal that has four limbs or limb-like appendages, including amphibians, reptiles, birds, and mammals.