Earth-Rite Organic Foods (Scenario)
Earth-Rite Organic Foods Inc. is an MNE based in Sweden with subsidiaries located in numerous countries around the world. Earth-Rite has annual sales of $10 billion and employs more than 90,000 individuals worldwide. Earth-Rite currently dominates the organic food industry, but competitors are beginning to catch up because of a growing demand for organic produce. Earth-Rite is considering a collaborative venture with a small chain of organic grocery stores located in Brazil, a country where Earth-Rite has no stores.
-Earth-Rite executives are considering internalizing operations in Brazil. Which of the following, if TRUE, best supports this plan?

Question

Quizplus · Accepted Answer

Internalizing operations allows a company to maintain direct control over all aspects of its business, including product quality, which is crucial for a company like Earth-Rite that operates in the organic food industry where quality is paramount.