BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Management loses control over the firm.
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Core competencies are slowly transferred to operations in other countries.
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The firm may not fully adapt to the new culture.
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Policies and procedures are changed dramatically in other countries.
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Technological differences can create miscommunication.
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Detailed explanation-1: -These factors include cultural and social influences, legal issues, demographics, and political conditions, as well as changes in the natural environment and technology.
Detailed explanation-2: -For instance, if a consumer group is highly ethnocentric, they would prefer to buy domestic products to international or multinational product. Or they may prefer to buy products from the country which have the same or similar ethnocentric attributes.
Detailed explanation-3: -Some of the factors include: cost; price elasticity of demand; competition; nature of products or industry; exchange rate fluctuations; distribution system; location of production facility; location and environment of the foreign market; and government regulations in the foreign market.