Carvel Industries, an MNE, Broadens Its Product Line in Each

question 78

Multiple Choice

Carvel Industries, an MNE, broadens its product line in each of the countries that it enters. Carvel most likely benefits from ________.

• A) multinational flexibility
• B) economies of scale
• C) location efficiencies
• D) economies of scope

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Definitions:

Black, Jensen, and Scholes

Refers to scholars who contributed to the development of financial theories and models, most notably the Black-Scholes model for pricing options.

Two-Stage Regression

A statistical analysis method used when there are indirect causal relationships, involving first regressing an independent variable on an instrumenting variable, then the outcome on the fitted values from the first stage.

CAPM

The Capital Asset Pricing Model, a theory describing the relationship between systematic risk and expected return for assets, particularly stocks.

Market Beta

A measure of the volatility of a security or a portfolio in comparison to the market as a whole.