Which of the Following Would Be Considered an Obstacle to Internationalization

question 67

Multiple Choice

Which of the following would be considered an obstacle to internationalization for a small firm in a large domestic market?

• A)​A plentiful resource base.
• B)​The large size of their domestic market.
• C) ​A large margin for error.
• D) ​All of the above.

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Definitions:

Complementary Resource

A good or service that enhances the value or performance of another primary product or service.

Profit-maximizing Firm

A company that adjusts its production and sales strategies to achieve the highest possible profit, considering its costs and market demand.

Substitution Effect

This effect describes the change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute more expensive items with cheaper ones.

Output Effect

The impact on total output or production resulting from changes in the price level or other economic factors.