Why Is Crafting a Strategy to Compete in One or More

question 21

Multiple Choice

Why is crafting a strategy to compete in one or more foreign markets inherently complex?

• A) Because factors that affect industry competitiveness vary from country to country.
• B) Because of the potential for location-based advantages in certain countries.
• C) Because different government policies and economic conditions make the business climate more favorable in some countries than others.
• D) Because of the risks for shifts in currency exchange rates.
• E) All of these.

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Definitions:

Business Efficiency

Describes the effectiveness with which a company or organization uses its resources to produce goods or services and achieve its objectives with minimal waste.

Competition

The rivalry among businesses to attract customers, increase sales, and gain market share.

Tying Arrangement

A business practice where the sale of one product is conditioned on the purchase of another, often scrutinized for anti-competitive effects.

Exclusive Dealing

refers to a restrictive agreement between supplier and distributor, where the distributor agrees to sell only the supplier's products and not those of competitors.