Question

The CEO of Coffman Enterprises wants to export products to foreign markets.However, top executives at Coffman are concerned that the firm will face fierce competition from foreign rivals because Coffman lacks significant core competencies.The executives are most likely worried that Coffman lacks ________.

A) capital advantages
B) internalization advantages
C) location advantages
D) ownership advantages

Answer 1

The correct answer is letter "D": ownership advantages.

Step-by-step explanation:

Ownership advantage refers to a strategy of entering a foreign market through Foreign Direct Investment (FDI). According to this approach, whenever a firm has the ownership of a valuable asset it will prefer to invest abroad via FDI exporting products, franchising or licensing its technology.

However, if Coffman Enterprises executives are concerned about the entity's core competencies, it is because they are worried about the company's ownership advantages.

Answer 2

D) ownership advantages

Step-by-step explanation:

Based on the scenario being described it can be said that the executives are most likely worried that Coffman lacks ownership advantage. This term refers the competitive advantage that exists for a company that is attempting to enter a foreign market. Such as Coffman Enterprises is trying to do, but since they are concerned about the fierce competition, then they are stating that Coffman may not have a competitive advantage in that market to deal with the existing competitors.