Emeremen Corp., an automobile manufacturer in Mallowdeer, plans to enter a foreign market. It wants to establish its new office in Ostview. Which of the following is a qualitative factor that should be considered by Emeremen Corp. while choosing a new office location?

Question

Quizplus · Accepted Answer

Qualitative factors are non-measurable factors that are subjective in nature. Company strategy is a qualitative factor that Emeremen Corp. should consider while choosing a new office location. The company's strategy should align with the new location. For example, if the company plans to focus on exporting high-end luxury cars, it may choose a location that has a high-income demographic. Therefore, option A is the correct answer. The other options, such as tariff and nontariff barriers, transportation costs, and exchange rates, are quantitative factors that can be measured and analyzed.