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ABC Appliance (Scenario) The ABC Appliance Corporation Is a Florida-Based Manufacturer of Refrigerators

Question 20

Multiple Choice

ABC Appliance (Scenario)
The ABC Appliance Corporation is a Florida-based manufacturer of refrigerators, dishwashers, and other large household appliances. ABC takes advantage of NAFTA, and as a result, the firm has loyal customers across North America. ABC managers would like to expand into the Asian market, but are unsure of the best way to do so. ABC managers are meeting to discuss various possibilities for entering the Asian market.
-Which of the following most likely supports a decision to enter the Asian market by building a factory near Tokyo?


A) Executives at ABC want the firm to have the flexibility to reconfigure operations at the Japanese plant.
B) The Japanese yen has been fluctuating over the last year and analysts do not anticipate it settling down.
C) ABC managers want to delegate responsibility of much of the Japanese plant to local intermediaries.
D) The CEO of ABC is willing to invest a large amount of capital and other assets to ensure success in Japan.

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