Most Small Firms Choose to Outsource Internationally in Order to

question 28

Multiple Choice

Most small firms choose to outsource internationally in order to

• A) avoid domestic taxes.
• B) avoid competition from other US companies.
• C) cut costs and access talented foreign employees.
• D) take advantage of legal loop-holes in foreign countries.

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Definitions:

Call Provision

A feature in a bond or other fixed-income security that allows the issuer to buy back the security before its maturity date.

Required Return

The minimum expected return by investors for taking on a certain level of risk in an investment.

Imperial Oil

A Canadian petroleum company, focusing on the exploration, production, and sale of oil and gas products.

Selling at a Discount

The act of selling a product or security for less than its nominal or stated value.