In expanding outside its domestic market,one way a company can strive to gain competitive advantage (or offset domestic disadvantages)is by
A) using a differentiation-based competitive strategy in those country markets with superior resources.
B) deliberately choosing not to compete in countries with high tariffs and high taxes (which then have to be passed along to buyers in the form of higher prices), thus keeping costs and prices lower than rivals.
C) using an export strategy to circumvent the risks of adverse exchange rate fluctuations.
D) using location in a manner that lowers costs or else helps achieve greater product differentiation and allowing for the transfer of competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets.
E) employing a multidomestic strategy instead of a global strategy.

Question

Quizplus · Accepted Answer

By using location in a manner that lowers costs or achieves greater product differentiation, a company can gain a competitive advantage in foreign markets. This can also allow for the transfer of valuable competencies and capabilities from domestic operations to foreign operations, further enhancing the company's competitive position. Export strategies (C) may not be viable in all cases, and deliberately choosing not to compete in certain countries (B) may limit potential growth opportunities. While differentiation-based competitive strategies (A) can be effective, they may not always be feasible or sufficient on their own. Multidomestic strategies (E) may also limit a company's ability to fully leverage its resources and capabilities across different markets.

In Expanding Outside Its Domestic Market,one Way a Company Can