In Terms of the Global Marketplace, There Are Three Primary

question 185

Multiple Choice

In terms of the global marketplace, there are three primary types of companies: international firms, multinational firms, and transnational firms. The key factor that distinguishes one from another is

• A) the firm's financial capacity to take risks.
• B) the willingness and ability to embrace diversity and cultural differences.
• C) the firm's orientation toward and strategy for global markets and marketing.
• D) the relative position of the product or service in terms of its life cycle.
• E) the relative size of the firm both in financial terms and in production capacity.

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Definitions:

Personal Saving

Personal saving is the portion of personal income that is not expended on consumption or taxes and is instead saved for future use.

Total Saving

The sum of personal savings, plus business savings (undistributed corporate profits), and government surplus in an economy.

Disposable Income

Financial reserves allocated for households for expenditures and savings following income tax reductions.

APC

Average Propensity to Consume, which is the ratio of total consumption to total income.