1) Ford is focusing on building a world car to sell golbally; therefore reducing
ID: 2440474 • Letter: 1
Question
1) Ford is focusing on building a world car to sell golbally; therefore reducing developmental costs and adapting the vehicle for local markets, it should tend to use a :
a) Mulidomestic strategy c) transnational strategy
b) Global strategy d) none of the above
2) The market analysis tool assesses environmental forces such as culture, administration, geography and economic environmental forces
a) Pestel analysis c) SWOT analysis
b) CAGE analysis d) none of the above
3) Which of the following is the least risky for an importer?
a) open account c) An irrevocable letter of credit
b) Cash in advance d) a bank collection time draft
4) Most firms begin their involvement in overseas business by:
a) Exporting c) Wholly owned subsidiary
b) join venture d) none of the above
5) Companies such as Pizza Hut or Chipotle face strong pressure to adapt its products or services for local markets, ikt should tend to use a :
a) Home replication strategy c) Global strategy
b) multidomestic strategy d) transnational strategy
Explanation / Answer
Answer 1:
Option C. When the company faces strong pressure to reduce cost and adapt the product for local markets, it should use transnational strategy.
Answer 2:
Option B. CAGE Analysis is the market analysis tool assesses environmental forces such as culture, administration, geography and economic environmental forces.
Answer 3:
Option C. An irrevocable letter of credit is the least risky for an importer.
Answer 4:
Option A. Most firms begin their involvement in overseas business by Exporting.
Answer 5:
Option B. Companies such as Pizza Hut or Chipotle face strong pressure to adapt its products or services for local markets, ikt should tend to use a multi domestic strategy.
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