Question

The decision of what entry mode to use for international expansion is primarily based on all of the following factors except

A. The industry’s competitive conditions
B. The country’s situation and government policies
C. The worldwide economic situation
D. The firm’s unique set of resources, capabilities and core competencies
E. The experiences and capabilities of the firm’s top management team.

Answer 1

C. The worldwide economic situation

Step-by-step explanation:

These are various advantages for a company that expands into the international market. Having a presence on multiple countries gives advantage of being able to leverage on cheaper labour in some locations, unique capabilities of certain countries, and more favourable political climate for doing business.

Modes of expansion into international market are exporting, liscensing, partnering, acquisitions, and greenfield venturing.

The decision on the entry mode for international expansion includes competitive conditions in the industry, government policies, experience of the companies team, and unique capabilities of the company.

Consideration is not given to worldwide economic situation, but focus is more on the country into which expansion is to occur.