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The Same Automobile Company Produces Fiats and Ferraris

Question 70

Multiple Choice

The same automobile company produces Fiats and Ferraris.The company builds an engine plant in China with low production costs for Fiats but not Ferraris.The probable reason is that ________.


A) Fiat competes mainly on a focus strategy, whereas Ferrari competes mainly on a mass-market strategy
B) Fiat competes mainly on a mass-market strategy, whereas Ferrari competes mainly on a focus strategy
C) Ferrari faces global competitors in China, whereas Fiat competes in China mainly against Chinese competitors
D) although Ferrari did not build an engine plant, it will use the same Fiat engines in its models

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