Question

In expanding into foreign markets, a company can strive to gain competitive advantage (or offset domestic disadvantages) by

Answer 1

Here's the options that completes the question:

A. building a state-of-the-art facility to fully capture scale economies via an export strategy.

B. using export, licensing, or franchising strategies so as to minimize risk and capital investment.

C. locating buyer-related activities in all countries where it sells its product.

D. dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets.

E. avoiding the use of strategies that entail coordinating its domestic strategic moves with its strategic moves in the various foreign markets that it enters.

Answer:

D. dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets

Explanation:

A key condition that makes a firm achieve competitive advantage or a favourable business position is it's costs and product design.

If a firm can lower it's cost in a foreign market while also maintaining quality just as it is has done in it's domestic market then it stands a better chance of success.

For example, if a firm in the clothing line industry decides to expand its operations to a foreign market eg Africa.

A key factor in determining its success is its ability to lower its cost in the foreign market as compared to competitors, while also achieving the same quality standards of products.