
Refer to the scenario below to answer the following question(s) .
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-What did Selman & Saks hope to gain by entering the French market?
A) access to new consumer markets
B) access to less expensive labor
C) access to less expensive materials
D) access to foreign investment incentives
E) the ability to offset domestic economic cycles
Correct Answer:
Verified
Q59: Income distribution is the second economic factor.
Q60: Which of the following is an example
Q61: Nike inadvertently offended Chinese officials when it
Q62: A company should make several important decisions
Q63: Tariffs are limits on the amount of
Q65: If Azerbaijan imported wheat from Romania in
Q66: Market size, market growth, the cost of
Q67: Foreign firms are expanding aggressively into new
Q68: Which of the following is a demographic
Q69: Demographic characteristics, geographic characteristics, economic factors, sociocultural
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents