globus exam with 100% correct answers

Why Companies Expand into International Markets To gain access to new customers. To achieve lower costs and enhance the firm's competitiveness. To further exploit its core competencies. To gain access to resources and capabilities located in foreign markets. To spread its business risk across a wider market base. Factors That Shape Strategy Choices in International Markets The degree to which there are important country differences in buyer tastes, market sizes, and growth potential. Whether opportunities exist to gain a location-specific advantage based on wage rates, worker productivity, inflation rates, energy costs, tax rates, and other factors that impact cost structure. The risks of adverse shifts in currency exchange rates. The extent to which governmental policies affect the business environment . Differences in local buyer tastes Raise manufacturing and distribution costs. Reduce scale economies and learning curve effects. Differences in market growth potential Demographics, income levels, and cultural attitudes vary widely in emerging markets. Lack of infrastructure, distribution systems, and retail networks limits market growth. The Risks of Adverse Exchange Rate Shifts Exporters gain in competitiveness when the currency of the country in which the goods are manufactured is weak relative to the currency of the country to which the goods are to be exported. The Impact of Host-Government Policies on the Local Business Climate Host-government policies that create a business climate favorable to foreign firms agreeing to construct or expand production and distribution facilities in the host country include: Reduced taxes, Low-cost loans, Site-development assistance. The Impact of Host-Government Policies on the Local Business Climate (cont'd) Host-government policies negatively affecting foreign-based firms include: Environmental regulations, Customs requirements, tariffs, and quotas Local content requirements, Requiring prior approval of capital spending projects, Limits on repatriation of local funds, Local ownership or partner requirements, Subsidies for domestic companies.