Which of the following, if true, would most weaken her argument? A) Investors will not be willing to put money into Gizmo’s foreign business expansion without a detailed business plan. B) Current Gizmo employees will need special cultural training to do business effectively in other countries. C) The currency exchange rate between countries can fluctuate. D) Marketing strategies that are successful in the United States are not always successful overseas. E) Gizmo’s existing products can be used in other countries.
Gizmo Sprockets is a successful U.S. distributor of home appliance parts. Having been in business for more than ten years, it has contracts with thousands of retailers and repair shops throughout the country. The CEO wants Gizmo to go international, opening some locations in large economies such as Brazil and India.
He thinks that since the principles of how people do business in a free market are essentially the same anywhere, the expansion of Gizmo’s business into other countries should be fairly straightforward. In other words, because the company has been successful in the United States, it will also be successful in international markets using precisely the same techniques.
Gizmo’s marketing director argues that because the global economy is interconnected, if Gizmo continues to be profitable in the United States it should be able to invest that money to do well internationally. Which of the following, if true, would most weaken her argument?
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