International Trade and Development

In: Business and Management

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Question 1: “You can’t tell consumers that the low price they are paying on that fax machine is somehow unfair. They’re not concerned with the profits of some company. To them, it’s just a great bargain and they want it to continue.” Do you agree with this statement? Do you think that people from different cultures would respond differently to this statement? Explain your answers. 2

Question 3: “Companies should use investment entry modes whenever possible because they offer the greatest control over business operation.” Do you agree or disagree with this statement? Are there times when other types of market entry offer greater control? When is investment entry a poor option? 4

Question 4: Identify the three business level strategies. Describe how they differ from one another. 6

Cost leadership strategy 6

Segmentation Strategy 6

Differentiation Strategy 7

Question 5: Some people believe the rise of regional trading blocs threatens free trade progress made by the WTO. Do you agree? Why or why not? 9

References 10

Question 1: “You can’t tell consumers that the low price they are paying on that fax machine is somehow unfair. They’re not concerned with the profits of some company. To them, it’s just a great bargain and they want it to continue.” Do you agree with this statement? Do you think that people from different cultures would respond differently to this statement? Explain your answers.

I agree with the statement “You can’t tell consumers that the low price they are paying on that fax machine is somehow unfair. They’re not concerned with the profits of some company. To them, it’s just a great bargain and they want it to continue.” There are various reasons for such a scenario to take place. One of the main reasons is dumping. Dumping can be classified into 2 types. The first type is when a foreign firm is trying…...

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