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Scenario - the Renna Company

Question 85

Multiple Choice

Scenario - The Renna Company
Established in 1956, the Renna Company has always maintained its operations within the boundaries of the United States. Originally based in Lexington, Kentucky, this company has now expanded operations into thirteen other U.S. states. While it's inexpensive and efficient cooling and heating products are in high demand even in foreign markets, this company contends it has no desire for international expansion.
Conducting operations strictly within the U.S. borders does not appear to have limited this company overly much. It realized net profits of two billion dollars last year and provided gainful employment for over four thousand workers. The leaders of the Renna Company realize greater profits could be attained through international expansion. However, they stand in agreement when they state, "It is not always the money that best defines the worth of an organization."
The company desire to stay true to its mission statement, which claims, "It will serve the marketplace of the United States with its superior products and provide job opportunities with a fair wage for its employees." The Renna Company is very proud of its products and enjoys the fact they are produced and sold in the United States of America. This company truly reflects the success possible when holding to the fact that "Made in America" is still a winner.
-The top management members of the Renna Company have outlined the pros and cons associated with global expansion of their operations. Which one of the following items would not be considered a benefit their company could gain should they ever decide to venture into the international marketplace?


A) Improved quality of life for members of the societies involved
B) Greater access to technologically intensive manufacturing techniques
C) Loss of domestic jobs and a decrease to the prevailing wage scale
D) Lower cost of imported goods
E) Poverty reduction

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