Organic Towel Exports (Scenario)
The Organic Towel Company (OTC) employs 400 workers at its facility in Liverpool, England, where the firm has been manufacturing 100% organic cotton towels for five years. OTC sells towels in the United Kingdom primarily to boutique hotels and specialty retail stores, as well as to individual consumers through the company's website. Recently, OTC managers attended a trade show in London where they made contact with numerous foreign market managers. OTC received a request from Earth Waves, an organic clothing store in Toronto, Canada, for a large order of towels. OTC had not been looking into expanding, but firm managers are seriously considering the opportunity to reach a global niche market with their towels.
-Which of the following most likely supports OTC exporting their towels to Earth Waves?
A) Domestic sales of OTC towels have dwindled, and a new market is needed.
B) Earth Waves is located in an excellent location in central Toronto.
C) OTC is an SME that can readily adapt to the demands of the Canadian market.
D) The founder of OTC has numerous contacts in Canada.
Correct Answer:
Verified
Q7: A company-owned subsidiary is _.
A) accomplished by
Q8: Focal firms that internationalize through exporting will
Q9: Indirect exporting is exporting that is accomplished
Q10: Which of the following is most likely
Q11: Compared to other entry strategies, exporting minimizes
Q13: Exporting and importing collectively refers to international
Q14: Which of the following services CANNOT be
Q15: After managers have chosen an appropriate market
Q16: The Internet provides the means to sell
Q17: The Internet facilitates international trade in the
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