Asked by Andrea Madison on May 01, 2024
Verified
In the context of entering a foreign market, which of the following companies should avoid choosing export as its entry mode?
A) Deano Herbal, which does not wish to invest much on its infrastructure
B) Lanne Inc., which uses e-marketers to sell directly to consumers around the globe
C) Shethan Co., which supplies bulky and heavy machineries to its customers
D) Tandem Footwear, which does not want to keep an inventory in different locations around the world
Bulky
Describes items that are large in volume or size compared to their weight, often resulting in challenges with transport, storage, or handling.
Heavy Machineries
Large and heavy vehicles or equipment used for construction, industrial, or agricultural purposes.
- Explore the implications of exporting and licensing for a company's international expansion strategies.
- Detail the unfavorable factors connected to distinct entry approaches, like joint ventures and exporting.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
C
Explanation :
Shethan Co. should avoid choosing export as its entry mode because exporting bulky and heavy machinery can be highly impractical and costly due to shipping and logistics challenges.
Learning Objectives
- Explore the implications of exporting and licensing for a company's international expansion strategies.
- Detail the unfavorable factors connected to distinct entry approaches, like joint ventures and exporting.
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