Assignemnt:
1. The reasons why a company opts to expand outside its home market include
- gaining access to new customers for the company's products/services.
- spreading its business risk across a wider market base.
- achieving lower costs and enhancing the company's competitiveness.
- a desire to capitalize on its core competencies and capabilities.
- All of these.
2. Which of the following is not an accurate statement as concerns competing in the mark of foreign countries?
- A multi-country strategy is generally superior to a global strategy.
- There are country-to-country differences in consumer buying habits and buyer tastes a preference.
- A company must contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements.
- Product designs suitable for one country are often inappropriate in another.
- Market growth rates vary from country to country.
3. A U.S. manufacturer that exports goods made at its U.S. plants for shipment to foreign markets
- is competitively disadvantaged when the U.S. dollar declines in value against the currencies of the countries to which it is exporting.
- is largely unaffected by fluctuating exchange rates; it would, however, be affected if it plants were in foreign countries.
- becomes more competitive in foreign markets when the U.S. dollar gains in value again the currencies of the countries to which it is exporting.
- becomes more competitive in foreign markets when the U.S. dollar declines in value against the currencies of the countries to which it is exporting.
- has no interest in whether the dollar grows stronger or weaker versus foreign currency?