The Uncontrollable Issue of ________ Faced by a Company Abroad

question 50

Multiple Choice

The uncontrollable issue of ________ faced by a company abroad is often amplified by the "alien status" of the company, which increases the difficulty of properly assessing and forecasting the dynamic international business climate.

• A) research
• B) channel of distribution
• C) product specification
• D) politics
• E) product promotion

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Definitions:

Negative Externality

A cost that affects a third party who did not choose to incur that cost, often associated with pollution or public health issues.

Ronald Coase

A British economist known for his work on transaction costs, property rights, and the theory of the firm.

Negative Externalities

Unintended and unfavourable outcomes or costs imposed on a third party not involved in a transaction or activity.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.