A U.S. firm wants to locate in a developing nation to benefit from lower-cost labor while providing jobs for the poor in
Posted: Mon Jun 06, 2022 6:13 am
A U.S. firm wants to locate in a developing nation to benefit
from lower-cost labor while providing jobs for the poor in the
foreign market. The company would be the first to establish its
vertically integrated operations in the country and it will need to
invest heavily in training and development of its workforce to sell
products globally. Which approach will the firm need to take in
order to be MOST profitable?
Manage structural risk for its outside sales operations.
Hedge against competitive risk from multinationals.
Manage operational risk to scale low-cost production.
Generate marketing of its higher-end offerings.
from lower-cost labor while providing jobs for the poor in the
foreign market. The company would be the first to establish its
vertically integrated operations in the country and it will need to
invest heavily in training and development of its workforce to sell
products globally. Which approach will the firm need to take in
order to be MOST profitable?
Manage structural risk for its outside sales operations.
Hedge against competitive risk from multinationals.
Manage operational risk to scale low-cost production.
Generate marketing of its higher-end offerings.