A firm is currently seeking resources from foreign countries. Which of the following is the LEAST likely reason for doing so?
A) manufacturing products at a lower cost
B) gaining knowledge about a specific market
C) following a customer into the global market
D) differentiating its products from the competition
Question 2
Critics of offshoring claim all EXCEPT which of the following?
A) Cost savings are seldom passed on to final consumers.
B) Offshoring reduces the incomes of people in low-wage countries.
C) Incomes of workers in countries whose companies offshored production have gone down as a percentage of national income.
D) Many workers who have been displaced by offshoring do not have the skills needed for higher-value jobs.
Question 3
Assume that company executives at the firm would like to increase sales by expanding into an international market. Which of the following factors, if true, best supports a decision to expand sales globally?
A) It can offshore most of its production.
B) It can obtain all of its resources for the same price overseas.
C) Its costs of making additional sales would not increase disproportionately.
D) The foreign market has higher real interest rates.
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