Match the Term with Its Definition

question 39

Multiple Choice

Match the term with its definition.
-The purchase by a business in one country of a company located in another country

• A)cross-border acquisition
• B)exporting
• C)globalization
• D)greenfield venture
• E)importing
• F)offshoring
• G)trade intermediary
• H)trade mission

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Definitions:

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain at a constant.

Average Total Costs

The cost of producing each unit, calculated by dividing the overall production expense by the number of units produced.