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Using Domestic Plants as a Production Base for Exporting Goods

Question 31

Multiple Choice

Using domestic plants as a production base for exporting goods to selected foreign country markets


A) can be an excellent initial strategy to test the international waters and learn if attractive market positions can be established in foreign markets.
B) can be a competitively successful strategy when a company is focusing on vacant market niches in each foreign country and does not have to compete head-to-head against strong host country competitors.
C) can be a powerful strategy since a company can maintain a one-country production base allowing it to capitalize on company competencies and capabilities.
D) can be a weak strategy when competitors are pursuing multi-country strategies.
E) can be a powerful strategy because a company is not vulnerable to fluctuating exchange rates.

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