Even Though Other Combination Alternatives Can Be Devised, Companies Generally

question 60

Multiple Choice

Even though other combination alternatives can be devised, companies generally can pursue three global product strategies to penetrate foreign markets. These strategies
Are to extend the home-grown product/communication strategies, adapt their strategy
To the local marketplace, and:

• A) invent new products for foreign customers.
• B) concentrate on services.
• C) apply for permission to copy domestic products.
• D) concentrate on image adjustment.
• E) focus on secondary issues (such as warranties).

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Definitions:

Discount Rate

Discount Rate is the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Mutually Exclusive

Situations or events that cannot occur at the same time; choosing one option excludes the choice of another.

Cash Flows

The total sum of money transfers both incoming and outgoing in a firm, majorly affecting its financial readiness.

Profitability Index (PI)

The present value of an investment’s future cash flows divided by its initial cost; also benefit/cost ratio.