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globus Questions with 100% Correct Answers | Updated & Verified 2024/2025
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globus Questions with 100% Correct Answers | Updated & Verified 2024/2025
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globusWhy Companies Expand into
International Markets - ANSTo gain get admission to to new clients.
To obtain lower prices and decorate the firm's competitiveness.
To in addition take advantage of its core abilities.
To benefit get entry to to resources and capabilities located in overseas markets.
To unfold its business hazard across a much wider marketplace base.
Factors That Shape Strategy Choices
in International Markets - ANSThe diploma to which there are important united states
differences in consumer tastes, marketplace sizes, and boom capability.
Whether opportunities exist to gain a place-precise gain based totally on salary charges,
employee productiveness, inflation costs, power fees, tax quotes, and different factors that
effect price structure.
The dangers of destructive shifts in currency exchange costs.
The quantity to which governmental rules have an effect on the enterprise surroundings .
Differences in local client tastes - ANSRaise manufacturing and distribution expenses.
Reduce scale economies and mastering curve outcomes.
Differences in market growth potential - ANSDemographics, earnings ranges, and cultural
attitudes vary widely in emerging markets.
Lack of infrastructure, distribution structures,
and retail networks limits marketplace growth.
The Risks of Adverse
Exchange Rate Shifts - ANSExporters advantage in competitiveness when the foreign money of
the usa in which the products are manufactured is susceptible relative to the forex of the u . S .
A . To which the products are to be exported.
The Impact of Host-Government Policies on the Local Business Climate - ANSHost-government
guidelines that create a commercial enterprise weather favorable to overseas corporations
agreeing to assemble or enlarge production and distribution centers within the host country
encompass: Reduced taxes, Low-price loans, Site-development help.
The Impact of Host-Government Policies at the Local Business Climate (cont'd) -
ANSHost-authorities regulations negatively affecting foreign-based totally corporations
encompass: Environmental policies, Customs requirements, tariffs, and quotas
Local content requirements, Requiring earlier approval of capital spending initiatives, Limits on
repatriation of nearby price range, Local possession or companion necessities, Subsidies for
home corporations.
, Advantages to exporting - ANSConservative manner to check worldwide waters
Minimizes both danger and capital requirements.
An export approach is prone when - ANSManufacturing prices in the domestic us of a are higher
than
in foreign nations where opponents have plants.
The expenses of transport the product to remote markets
are incredibly high.
Adverse shifts can arise in currency exchange costs.
Licensing makes sense while a company: - ANSHas precious technical knowledge or a
patented product but has neither the inner abilties nor assets to enter overseas markets.
Wants to avoid the dangers of committing sources to u . S . Markets which might be unusual,
politically unstable, economically unstable, or in any other case volatile.
Seeks to generate profits from potential royalties.
Disadvantage of licensing: - ANSProviding technical realize-how to foreign firms creates
dangers and difficulty in keeping manage over its use.
Franchising Strategies Advantages and Disadvantage - ANSAdvantages:
Franchisee bears many of the costs and risks
of establishing overseas places
Franchisor has to use up handiest the resources
to recruit, teach, and aid franchisees
Disadvantage:
Maintaining cross-border nice manipulate
Allowing franchisees discretion in adapting
to local choices and tastes.
Establishing a Subsidiary
in a Foreign Market - ANSAllows for direct control over all aspects
of operating in a foreign marketplace.
Options for developing a subsidiary: - ANSAcquiring both a struggling or successful overseas
neighborhood company is the most possible and direct direction to overcoming market-unique
entry obstacles.
Establishing a foreign subsidiary from the floor up thru internal improvement is based on the
firm's prior experience with foreign market operations.
Mutual Benefits of Cross-Border Alliances: - ANSFacilitation of entry into foreign markets
Strengthening of a firm's competitiveness in world markets.
Capturing of economies of scale in manufacturing and marketing.
Filling of gaps in technical information and local market know-how.
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