the reasons why a company opts to expand outside its home market include course hero

Why do companies expand outside their home market?

gaining access to new customers for the company's products/services.#N#B. spreading its business risk across a wider market base.#N#C. achieving lower costs through economies of scale, experience, and increased purchasing power .#N#D. exploiting its core competencies and capabilities .#N#E. identifying resources and capabilities in the company 's home market.

What is Exxon Mobil's pact with Gazprom?

Exxon Mobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set up a processing unit in Moscow. Which of the following is most likely the reason for Exxon Mobil to opt for this strategic alliance?

Which emerging markets are large?

E. the large size of emerging markets such as Brazil, Russia, China, and India.

Why is E. a powerful strategy?

E. can be a powerful strategy because a company is not vulnerable to fluctuating exchange rates.

What are the advantages of franchising?

having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend only the. resources to recruit, train, and support and monitor franchisees.

Do you have to compete head to head against strong host country competitors?

not have to compete head-to-head against strong host country competitors.

Do fluctuating exchange rates pose a risk to a company's competitiveness in foreign markets?

A. Fluctuating exchange rates do not pose significant risks to a company's competitiveness in foreign markets.

Which technology expands the importance of geographic distance?

C. information technology expands the importance of geographic distance.

What is Exxon Mobil's pact with Gazprom?

Exxon Mobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set up a processing unit in Moscow. Which of the following is most likely the reason for Exxon Mobil to opt for this strategic alliance?

What is a country with previously planned economies?

A. countries with previously planned economies are embracing market or mixed economies.

Which is superior to a global strategy?

A. A multicountry strategy is generally superior to a global strategy.

What is a "think local, act local" strategy?

A. is very risky, given fluctuating exchange rates and the propensity of foreign governments to impose tariffs on imported goods. B. is usually defeated by a "think global, act global" type of strategy.

What are the advantages of franchising?

having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend only the resources to recruit, train, and support foreign franchisees.

Why is export strategy important?

a. The advantages of using an export strategy to build a customer base in foreign markets include. A. being able to minimize shipping costs, avoid tariffs, and curb the effects of fluctuating exchange rates.