When Demand for a Small Business Is So High in a Foreign

question 37

Multiple Choice

When demand for a small business is so high in a foreign country that it justifies setting up a local branch,which of the following stages of internationalization is the small business at?

• A)Export management
• B)Passive exporting
• C)Production abroad
• D)None of the above

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Definitions:

Relatively Elastic

Describes a situation in which the quantity demanded of a good or service changes significantly due to a change in its price.

Time Interval

A specific duration or period between two points or events in time.

Substitutes

Substitutes are goods or services that can replace each other in usage, providing consumers with alternative choices when purchasing.

Price-Elastic

Descriptive of demand that is highly sensitive to changes in price, meaning a small price change can cause a significant change in the quantity demanded.