The Process of Targeting and Serving Markets Outside the Home

question 31

Multiple Choice

The process of targeting and serving markets outside the home country is known as ________.

• A) market diversification
• B) competition intensity
• C) reactive internationalization
• D) trade protectionism

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Definitions:

Open Economy

An economy that allows for trading and financial transactions with other countries.

Investment

Refers to the purchase of goods that are not consumed today but are used in the future to create wealth, such as purchasing machinery for a factory.

Net Capital Outflow

The difference between domestic residents’ investments abroad and foreigners’ investments in the domestic economy.

Net Exports

The value of a country's exports minus the value of its imports, reflecting the balance of trade between a country and its trading partners.