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Question
Apparel company RED Lion Ltd. has a strong presence along the West Coast in the U.S., and is looking to expand its market overseas. The company began through the export route, exporting apparel to firms in the U.K., but now wants to establish manufacturing units abroad. Which of the following would weaken the company's decision to expand abroad?
A) Establishing manufacturing abroad would reduce RED Lion's shipping costs.
B) There is increasing economic uncertainty in the U.S. market.
C) The preferences of customers in both countries are similar.
D) The economic systems in the two countries are very different.
E) A competitor in the U.S. market recently went out of business.
Answer
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