« previous next »

Author Question: In a short essay, discuss three reasons that firms often seek new market opportunities. What will ... (Read 182 times)

Frost2351

  • Hero Member
  • *****
  • Posts: 557
on: Jul 7, 2018
In a short essay, discuss three reasons that firms often seek new market opportunities.
 
  What will be an ideal response?

Question 2

What are three efficiency-related motives that focal firms might have for internationalizing through FDI? Explain your answer in a short essay.
 
  What will be an ideal response?


enass

  • Sr. Member
  • ****
  • Posts: 380
Reply #1 on: Jul 7, 2018
Answer to Question 1

a. Gain access to new markets or opportunitiesThe existence of a substantial market motivates many firms to produce offerings at or near customer locations. Local production improves customer service and reduces costs of transporting goods to buyer locations.
b. Follow key customersFirms often follow their key customers abroad to preempt other vendors from servicing them. This is especially true of firms that generate much of their sales from large-scale industrial customers. Establishing local operations positions the firm to better serve customer needs.
c. Compete with key rivals in their own marketsSome MNEs may choose to confront current or potential competitors directly, in the competitors' home market. The strategic purpose is to weaken the competitor by forcing it to expend resources to defend its market.

Answer to Question 2

This is great. Thanks


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Professional association conventions provide opportunities for networking with other massage ... Professional association conventions provide opportunities for networking with other massage ...
Professional association conventions provide opportunities for networking with other massage ... Professional association conventions provide opportunities for networking with other massage ...
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
computer short cuts computer short cuts
Competitive firms and maximization Competitive firms and maximization
A Short List of Human X-Linked Recessive and X-Linked Dominant Traitsa A Short List of Human X-Linked Recessive and X-Linked Dominant Traitsa
Video: Mendel's Pea Experiment

For a complete list of videos, visit our video library