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California Fresh Food Wants to Expand Internationally

Question 49

Multiple Choice

California Fresh Food wants to expand internationally. Sales Director Sun-Jun Lee prefers that the company export to foreign markets. What rationale should Lee use to show the advantage of exporting as a mode of entry?


A) A firm can avoid the cost of establishing manufacturing operations in the host country.
B) A firm shares the development costs and risks with its host partner.
C) A firm can earn returns from process technology skills in countries where FDI is restricted.
D) A firm has access to local partner's knowledge.
E) A firm has the ability to engage in global strategic coordination.

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