Which of the following modes of foreign market entry is the riskiest?

The actual margin per unit and margin per unit estimated in the plan are $6 and $8, respectively. The actual volume and the volume estimated in the plan are 5,000 units and 10,000 units, respectively. What is the margin variance of the business?

A) -$10,000 B) $10,000 C) -$20,000 D) $20,000 E) $5,000

In which of the following situations would a firm most likely pursue a low-cost leader strategy?

A) There are no competitors in the market and the firm is the market leader. B) The nature of its products does not allow the firm to maintain a volume advantage in the market. C) The company's product is a niche product and appeals to only a few customers. D) The market is quality-sensitive rather than price-sensitive. E) The firm can minimize its operational expenses in order to sell higher volumes of products.