Which of the Following Is Not a Reason Why Firms

question 13

Multiple Choice

Which of the following is not a reason why firms are reluctant to engage in international marketing activities?

• A)A limited appreciation for the different marketing environment abroad
• B)The lack of familiarity with national and international data sources and the inability to use them if obtained
• C)That firms often build up their international marketing activities gradually; frequently on the basis of unsolicited orders
• D)Converging tastes and preference on a global basis.

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Definitions:

Degree Of Operating Leverage

A measure, at a given level of sales, of how a percentage change in sales will affect profits. The degree of operating leverage is computed by dividing contribution margin by net operating income.

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as sales commissions.

Sales Increase

The rise in the volume or amount of sales or revenue a company achieves in a specific period compared to a previous period.

Advertising Campaign

A series of advertisement messages in various media that share a single idea and theme intended to achieve marketing objectives.