An Advantage Believed to Be Gained by Using Use a Purely

question 58

Multiple Choice

An advantage believed to be gained by using use a purely local agency for advertising in foreign markets is that

• A) companies are able to take advantage of economies of scale.
• B) in emerging markets, they take a more entrepreneurial and fresher approach to advertising than global agencies.
• C) local advertising is always more successfully than advertising through global agencies.
• D) because they employ only foreign nationals they can better adapt the firm's message to all cultures.

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Definitions:

Increase Price

The action of raising the cost that consumers must pay to purchase a product or service.

Economic Profits

The result of subtracting a firm's entire costs, encompassing both tangible and intangible expenses, from its total revenue.

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product or service, unlike price discrimination strategies where different prices are set for different markets or consumers.

Economic Profit

The profit a firm makes after deducting both explicit and implicit costs, reflecting the total opportunity costs of all resources involved.