Two Marketing Students, Fiona and Sayid, Discuss the Strategies of Star

Multiple Choice

Two marketing students, Fiona and Sayid, discuss the strategies of Star Seven Inc., a leading firm in the United States. Fiona believes that Star Seven entered a foreign market for the sake of efficiency, while Sayid argues that it entered for the purpose of expanding knowledge. Which of the following weakens Fiona's argument?

A) Star Seven aims to spread the costs of investments in plant and equipment across more sales in the new market.
B) Star Seven aims to serve multiple types of customers in the new market to gain new insights about its products.
C) Star Seven aims to sell products produced in excess at lower prices in the new market.
D) Star Seven aims to outsource some of its functions to reduce the labor and production costs.