One important concern a company has in trying to compete successfully in foreign markets is
A) convincing shippers to keep cross-country transportation costs low enough that the company can export its goods to foreign countries cheaply.
B) whether it will have to integrate forward into wholesale and/or retail activities in order to gain visibility for its products in foreign countries.
C) how it can gain competitive advantage based on where it locates its various value chain activities.
D) how to convince local government officials to reduce tariffs on the imports of its goods into their country.
E) developing the expertise to avoid the impact of fluctuating exchange rates.

Question

Quizplus · Accepted Answer

Locating value chain activities in strategic locations can give a company a competitive advantage in foreign markets. This can include factors such as access to cheap labor, transportation infrastructure, and proximity to key suppliers or customers. Integrating forward into wholesale and/or retail activities (choice B) is one way a company can increase its visibility in foreign markets, but it may not always be necessary or the most effective approach. Convincing shippers to keep transportation costs low (choice A) and reducing tariffs through government lobbying (choice D) are both important considerations, but they are not the most critical concern for competing successfully in foreign markets. Developing expertise to avoid the impact of fluctuating exchange rates (choice E) can also be important, but it is not the overarching concern that drives a company's strategies for competing in foreign markets.

One Important Concern a Company Has in Trying to Compete