Considering that Blades is contemplating to eventually shift its sales to Thailand, this could be a major competitive advantage.
December Looking to the Future in International Finance. Which method would you recommend for this firm? An alternative method would be a joint venture in which the Sports Exports Company produces and exports the footballs exclusively to a specific foreign firm that focuses on distributing sporting goods to retail stores in various countries.
How would Jim Logan decide which foreign markets he would attempt to enter? The firm would now have two plants instead of one, which could prevent it from fully capitalizing on economies of scale. MNCs experienced a higher cost of capital, and therefore a higher required rate of return.
ANSWER: It would likely overestimate its market share because the competition should increase as competitors penetrate the European countries. It is easy to suggest that the MNC should maintain a standard code of ethics, but in reality, that means that it will not be able to compete in some cases.