In expanding into foreign markets, a company can strive to gain competitive advantage (or offset domestic disadvantages)by
A)building a state-of-the-art facility to fully capture scale economies via an export strategy.
B)using export, licensing, or franchising strategies so as to minimize risk and capital investment.
C)locating buyer-related activities in all countries where it sells its product.
D)dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets.
E)avoiding the use of strategies that entail coordinating its domestic strategic moves with its strategic moves in the various foreign markets it enters.

Question

Quizplus · Accepted Answer

By dispersing activities among countries in a way that lowers costs and achieves greater product differentiation, a company can gain a competitive advantage. Additionally, by transferring competitively valuable competencies and capabilities from their domestic operations to foreign markets, the company can further offset any domestic disadvantages they may face. Export strategies may not allow the company to fully capture scale economies, while avoiding coordination between domestic and foreign strategies may result in missed opportunities for synergies. Locating buyer-related activities in all countries may not be necessary for all companies, and while exporting, licensing, or franchising may minimize risk and capital investment, it may not necessarily lead to a sustainable competitive advantage.

In Expanding into Foreign Markets, a Company Can Strive to Gain