When It Comes to Gaining Access to Resources, a Traditional

question 33

Multiple Choice

When it comes to gaining access to resources, a traditional motivation for going global has been to

• A) take advantage of unique features of the local market.
• B) find raw materials.
• C) change the shape of the product life cycle.
• D) serve the local community through the business.

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Definitions:

Net Operating Income

The income from a company's primary business operations, excluding deductions of interest and taxes.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period of time, such as rent or salaries.

Break-Even Point

The level of production or volume of sales at which total costs and total revenue are equal, resulting in no net loss or gain.

Variable Expenses

Variable expenses fluctuate with business activity levels, such as materials and labor costs, which increase as production increases.