Review - Companies opt to expand into foreign markets for...

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Companies opt to expand into foreign markets for such reasons as to gain access to new customers, achieve lower costs and enhance the company's competitiveness, capitalize on core competencies, and spread business risk across a wider market base. C A company is said to be an international competitor (as opposed to a global competitor) when it competes in a select few foreign markets (and perhaps has only modest ambitions to enter additional country markets). C Which one of the following is not a factor that a company must contend with in competing in the markets of foreign countries? A need to convince shippers to keep cross-country transportation costs low C Which one of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true? Domestic companies under pressure from lower-cost imports are benefited when their government's currency grows weaker in relation to the currencies of the countries where the imported goods are being made. C The stand-out characteristic of multicountry competition is that there is so much cross-country variation in market conditions and in the companies contending for leadership that the market contest among rivals in one country is not closely connected to the market contests in other countries—as a consequence, there is no global or world market, just a collection of self-contained country markets. C One of the biggest strategy issues confronting a company competing in the international arena is whether to offer a mostly standardized product worldwide or whether to customize the company's offerings in each different country market to match the preferences and requirements of local buyers C The essential difference between multicountry competition and global competition is that in multicountry competition the markets of different countries are not closely linked and rivals battle for "national market championships" whereas in global competition the markets of different countries are closely linked and form a world market, thus pitting rivals in a battle for the "world market championship C Which of the following statements is false Export strategies are favored by most participants in foreign markets because domestic plants tend to be more cost efficient than foreign plants, because using domestic plants as a production base for exporting goods to foreign markets is less risky and entails lower capital requirements, and because it is a lot easier to establish distribution capabilities in foreign markets than it is to establish production capabilities. C Which of the following is/are not "valid" strategy options for entering and/or competing in foreign markets? An import strategy, a strategic alliance strategy, a profit sanctuary strategy, and a cross-market
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This note was uploaded on 10/02/2011 for the course FIN 685 taught by Professor Grady during the Spring '11 term at Texas A&M.

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Review - Companies opt to expand into foreign markets for...

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