Question

If a foreign country's consumers tend to only purchase products that are produced locally, the least effective strategy for a U.S. firm is to: a. develop a subsidiary (under the U.S. name) that manufactures and sells products in that country. b. develop a subsidiary (under the U.S. name) that manufactures products in that country and exports them to border countries. c. use a licensing arrangement with a local firm in that country. d. enter into a joint venture in that country.

Answer 1

Answer:

develop a subsidiary (under the U.S. name) that manufactures and sells products in that country.

Explanation:

Among the given options the least effective otionis to develop a subsidiary in the country with the US company name and manufacture locally, in addition to manufacting locally the company can export to border countries. This will increase popularity of the product and enhance adoption.

Liscencin with a local firm will increase adoption of new product as consumers see the product as one from a local firm.

Finally the company can enter a joint venture in the country to also increase adoption as consumers perceive it is a local company.