What Is the Most Profound Change for Firms at the Global

question 34

Multiple Choice

What is the most profound change for firms at the global marketing stage of internationalization?

• A) More than half of the multinational firm's revenue is generated from domestic markets.
• B) Sales to foreign markets are made as and when goods become available.
• C) Temporary surpluses marketed in foreign markets is the only element of internationalization.
• D) Companies treat the world, along with home market, as one market.
• E) Domestic demand always exceeds the firm's production capacity.

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Definitions:

Discount Factor

A multiplier used to determine the present value of future cash flows or income, reflecting the time value of money.

Internal Rate

Often referred to as the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Payback Period

The time duration required for an investment to generate cash flows sufficient to recover the initial cost of the investment.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.