Question

In: Finance

Which of the following is not an accurate statement as concerns competing in the markets of...

Which of the following is not an accurate statement as concerns competing in the markets of foreign countries?

Group of answer choices

Starbucks must contend with fluctuating exchange rates and country-to-country variations in host government restrictions and requirements.

Market growth rates vary from country to country, impacting John Deere's international sales.

Avon's cosmetic products suitable for China are often inappropriate in Singapore and Malaysia.

Localizing Apple's product offerings country-by-country leads to low-cost advantage.

There are country-to-country differences in Round Table Pizza's customers' buying habits and buyer tastes and preferences.

Solutions

Expert Solution

Localizing Apple's product offerings country-by-country leads to low-cost advantage.

EXPLANATION:
Differences in the buyer tastes & preferences are a challenge for companies regarding customizing versus standardizing of products & services. Greater standardization of the global company's product offering might lead to scale economies & learning-curve effects, therefore contributing to achievement of low-cost advantage. Changing population sizes, income, & other demographic factors lead to considerable differences in the market size & growth rates from one country to another. Sometimes, product designs which are suitable in a country are inappropriate for another because of different local standards. When companies produce & market products & services in various different countries, they are subject to impacts of sometimes favorable & sometimes unfavorable changes in the currency exchange rates.


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