An Insurance Firm Based in California Had Difficulty Expanding Its

question 16

Multiple Choice

An insurance firm based in California had difficulty expanding its operations to Asian markets as most of the target countries had strict regulations on sharing details about their customers with the home office. The company had to obtain approval from its customers before sharing their personal information with its U.S. office. Which barrier is most likely to have affected the services of the insurance firm?

• A) protectionism
• B) control on transborder data flows
• C) protection of intellectual property
• D) cultural requirements for adaptation
• E) language translation barriers

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Definitions:

Compounded Semi-Annually

This is the process where interest is added to the principal sum of a loan or deposit twice a year, resulting in interest being earned on interest from that point on.

Replacement Stream

A series of cash flows intended to replace the benefits of an asset or investment over time.

Payments

Payments refer to the amounts of money transferred from one party to another as compensation for goods or services, or as fulfillment of an obligation.

Compounded Quarterly

The process where interest is added to the principal sum of a loan or deposit four times a year, resulting in a higher amount of interest being accumulated than if compounded less frequently.