Author Question: What is the relationship between a company's international market and its production location ... (Read 93 times)

storky111

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What is the relationship between a company's international market and its production location decisions? How do firms benefit from the use of scanning techniques when making location decisions?
 
  What will be an ideal response?

Question 2

Researcher Julie Norem found that a strategy called defensive pessimism is characteristically associated with people who tend to be more anxious than others. Defensive pessimism causes these people to _____.
 
  a. harness their anxiety in ways that help them achieve higher performance
  b. be paralyzed in the face of anxiety
  c. worry less about the details
  d. be less prepared than others


Gabe

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Answer to Question 1

If a company develops a product that consumers find attractive, it must still find production and transportation cost advantages so that it can price the product favorably enough to sell it. These cost advantages may come from producing near the market, thus allowing the company to sustain a long-term competitive advantage. To compare countries, managers use scanning techniques based on broad variables that indicate opportunities and risk. That way, decision-makers can perform a detailed analysis of a manageable number of geographic locations. Scanning is useful in that a company might otherwise consider too few or too many possibilities. When scanning, managers will look at external conditions in a host country that could significantly affect the success or failure of a foreign enterprise. Scanning can help managers determine whether a company will make a detailed study of the area, as well as the terms under which it will initiate a project.

Answer to Question 2

a



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