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Assignment 4 Megahertz Communications 1 .What was the motivation for Megahertz’s shift toward a strategy of export-led growth? Why do you think the opportunities for growth might be greater in foreign markets? Do you think that developing countries are likely to be a major market opportunity for Megahertz? Why? Export-led growth is an economic strategy used by some developing countries. This strategy seeks to find a niche in the world economy for a certain type of export. Industries producing this export may receive governmental subsidies and better access to the local markets. By implementing this strategy, countries hope to gain enough hard currency to import commodities manufactured more cheaply somewhere else. Before exploring international opportunities, Megahertz was in mature markets where there was plenty of competition. Export-led growth allowed for company growth without much competition in the export markets. Those opportunities were in developing markets that had been underserved, in part because the need for broadcast systems was itself developing in these countries. As countries develop, they will want major broadcast capabilities. Such capabilities are important to the government and to the growth of the private sector. 2 .Does Megahertz’s strategies for building exports make sense given the nature of the broadcast industry? Why? Megahertz’s strategy for exports was simple. The company aimed to provide a turnkey solution to emerging broadcast and media entities in Africa, the Middle East, and Eastern Europe. Megahertz was so successful with this strategy that the British government awarded the company a Small Business Export Award in 2000. Perhaps a key to Megahertz’s success was the fact that the company offered to custom design, manufacture, install, and broadcasting systems. In a region where there was a lack of broadcast
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