When a Company Operates in the Markets of Two or More

question 77

Multiple Choice

When a company operates in the markets of two or more different countries,its foremost strategic issue is:

• A) whether to use strategic alliances to help defeat its rivals.
• B) whether to vary the company's competitive approach to fit specific market conditions and buyer preferences in each host country or whether to employ essentially the same strategy in all countries.
• C) whether to maintain a national (one-country)manufacturing base and export goods to the other countries.
• D) choosing which foreign companies to team up with via strategic alliances or joint ventures.
• E) whether to test the waters with an export strategy before committing to some other competitive approach.

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Definitions:

Selling Price

The amount of money charged to customers for a product or service, potentially including costs, profit margins, and taxes.

Traceable Fixed Expense

Costs that can be directly linked to a specific product, department, or segment and do not change with the level of production.

Net Operating Income

A financial metric that calculates a company's profitability from its core business functions, excluding taxes and interest.

Price Reduction

Price reduction refers to lowering the selling price of goods or services, typically to attract more customers or sell excess inventory.