Jeff, the Sales Manager for Audio-Visual Systems, a Small Family

question 59

Multiple Choice

Jeff, the sales manager for Audio-Visual Systems, a small family business, is eager to get the company on an export path. The CEO of the company is not convinced, however. To convince the CEO, Jeff should point out that firms that do not export often

• A) face problems of currency conversion.
• B) lose out on significant opportunities for cost reduction.
• C) are able to reduce their unit costs.
• D) typically grow faster than those that do.
• E) can more easily leverage their technology in foreign markets.

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Definitions:

Excise Tax

A tax levied on specific goods, services, and activities, often included in the price of products like gasoline, tobacco, and alcohol.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied by producers.

Tax Burden

The total amount of taxes paid by individuals or businesses, relative to their income or profit.

Rental Housing

Dwelling units leased or rented to tenants under a contract or agreement, providing a place to live in exchange for payment.