Gizmo Sprockets is a distributor of home appliance parts. Having been in business for more than ten years, it now has contracts with thousands of retailers and repair shops throughout the country. The CEO wants Gizmo to go international, opening some locations in large economies such Brazil and India. He thinks that since the principles of how people do business in a free market are essentially the same anywhere, the expansion of Gizmo's business into other countries should be fairly straightforward. In other words, because the company has been successful in Canada, it will also be successful in international markets.
Gizmo's marketing director argues that because the global economy is interconnected, if Gizmo continues to be profitable in Canada, it should be able to invest that money to do well internationally. Which of the following, if true, would most weaken her argument?
Gizmo's existing products can be used in other countries.
The currency exchange rate between countries can fluctuate.
Current Gizmo employees will need some cultural training to do business effectively in other countries.
Investors will not be willing to put money into Gizmo's foreign business expansion without a business plan.
Marketing strategies that are successful in Canada are not always successful overseas.

Question

Quizplus · Accepted Answer

The Answer of Gizmo Sprockets is a distributor of home appliance parts. Having been in business for more than ten years, it now has contracts with thousands of retailers and repair shops throughout the country. The CEO wants Gizmo to go international, opening some locations in large economies such Brazil and India. He thinks that since the principles of how people do business in a free market are essentially the same anywhere, the expansion of Gizmo's business into other countries should be fairly straightforward. In other words, because the company has been successful in Canada, it will also be successful in international markets.
Gizmo's marketing director argues that because the global economy is interconnected, if Gizmo continues to be profitable in Canada, it should be able to invest that money to do well internationally. Which of the following, if true, would most weaken her argument?
Gizmo's existing products can be used in other countries.
The currency exchange rate between countries can fluctuate.
Current Gizmo employees will need some cultural training to do business effectively in other countries.
Investors will not be willing to put money into Gizmo's foreign business expansion without a business plan.
Marketing strategies that are successful in Canada are not always successful overseas.

Gizmo Sprockets Is a Distributor of Home Appliance Parts