Location-Specific Advantages for a Firm Are Those That Arise from

question 77

Multiple Choice

Location-specific advantages for a firm are those that arise from

• A) acquiring the home markets of foreign firms that threaten a firm's domestic market.
• B) gaining a commanding position in one market and using them to subsidize competitive attacks in other markets.
• C) preferring exporting over licensing in order to retain control over know-how, manufacturing, marketing, and strategy.
• D) utilizing resource assets that are tied to a particular foreign location and valuable enough to be combined with the firm's own unique assets.
• E) franchising and licensing.

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Definitions:

Payroll of Scotland Company

The total amount of wages and salaries paid by Scotland Company to its employees.

Total Payroll Tax

The combined amount of all governmental taxes that an employer is required to withhold and/or pay on behalf of their employees, including federal, state, and local taxes.

Social Security Taxes

Taxes levied on both employers and employees to fund the Social Security program, used for providing retirement, disability, and survivor benefits.

Medicare Taxes

Taxes withheld from employees' paychecks and matched by employers to fund the Medicare program.