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Author Question: One shareholder questioned the CEO's rationale for beginning an exploratory effort to establish a ... (Read 58 times)

Capo

  • Hero Member
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  • Posts: 545
on: Jul 7, 2018
One shareholder questioned the CEO's rationale for beginning an exploratory effort to establish a new manufacturing plant in India.
 
  The CEO responded by explaining that India was an untapped market with a high demand for products such as those produced by Sterling. His rationale represented an example of which of the following reasons for international expansion?
  A) investing in a potentially rewarding relationship with a foreign partner
  B) gaining access to lower-cost or better-value factors of production
  C) seeking opportunities for growth through market diversification
  D) better serving key customers that have relocated abroad

Question 2

Which of the following should be considered first in making the decision to export OTC towels to Canada?
 
  A) What is the probability of OTC and Earth Waves entering into a joint venture?
  B) How much fluctuation occurs in the exchange rate between the Canadian dollar and the British pound?
  C) What is the likelihood of Earth Waves opening a subsidiary in Canada?
  D) What documentation would be required for OTC to export towels to Asia?


Meganchabluk

  • Sr. Member
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  • Posts: 301
Reply #1 on: Jul 7, 2018
Answer to Question 1

C

Answer to Question 2

B


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