Foreign firms crack new markets by:
A) Undertaking actions deemed legitimate and appropriate by governing institutions
B) Bribing government officials
C) Hiring locals to manage the new entity
D) Outsourcing production

Question

Quizplus · Accepted Answer

Undertaking actions deemed legitimate and appropriate by governing institutions is the best approach as it ensures that the company is complying with local laws and regulations, which helps build trust with local customers and stakeholders. Using unethical practices such as bribery or outsourcing production may yield short-term benefits but can lead to reputational damage and legal repercussions in the long run. Hiring locals to manage the new entity is also a common strategy, but it should not be the only approach as it may limit the diversity of perspectives and skills within the company. Undertaking actions deemed legitimate and appropriate by governing institutions is the ethical and legal way for foreign firms to enter new markets. Bribing government officials can lead to legal and reputational issues. Hiring locals to manage the new entity is a good strategy, but it is not the only or best strategy for entering a new market. Outsourcing production is a common business practice, but it is not a strategy for entering a new market.

Foreign Firms Crack New Markets By