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Sonyo is a Taiwanese speaker manufacturer that entered the European market five years ago. During this period, the company gained considerable experience in foreign markets and global expansion and now feels confident and ready to enter the U.S. market. Which of the following best explains the global expansion method this company utilizes?

A) Internationalization
B) State model
C) Stages model
D) Born global method
E) CAGE framework
F) Conglomerate model

User DomingoMG
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Final answer:

Sonyo, a Taiwanese speaker manufacturer, uses Internationalization as its global expansion method, where it gradually enters a foreign market, adapts to local conditions, and subsequently establishes a direct presence.

Step-by-step explanation:

The method of global expansion used by Sonyo is best described by the term Internationalization. Internationalization refers to the process wherein a company enters a foreign market after gaining experience in its domestic market and possibly other markets outside its home country. The company gradually expands its operations and adapts to local conditions of the new market, often starting with exports and later establishing a local presence through direct investment.

This method is in contrast to the Born Global method, which involves a firm starting to aim at global markets from its inception. The CAGE framework is a tool used to analyze the cultural, administrative, geographic, and economic differences between countries and is not a method of expansion itself. The Conglomerate model would involve diversification into unrelated businesses, which does not seem to be the case with Sonyo. The State model is not commonly referenced in this context. Lastly, the Stages model, similar to internationalization, focuses on incremental market entry, but the given information is not detailed enough to confirm that this model is being followed.

User Nick DiQuattro
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