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:

Journal Entry

An accounting record that documents a business transaction in the ledger, specifying the accounts affected and the amounts.

Posted Twice

Accidentally recording a financial transaction or entry in the accounting records more than once, which can lead to discrepancies and require correction.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to verify that the total debits equal total credits.

Compound Journal Entry

A compound journal entry is an accounting entry which involves more than two accounts, recording multiple debits and/or credits in a single transaction.