International Diversification Is a Strategy Through Which a Firm Expands

question 19

True/False

International diversification is a strategy through which a firm expands the sale of its goods or services across the borders of global regions and countries into a potentially large number of geographic locations of markets.Instead of entering one or just a few markets, the international diversification means that the firm enters multiple markets.

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Definitions:

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date.

Underlying Asset

Refers to an asset (e.g., stocks, bonds, commodities) on which a derivative's value is based.

European Option

An option that can only be exercised at the end of its life, at its expiration date, unlike American options which can be exercised at any time up to the expiration date.

Expiration Date

The specific date on which an option contract becomes void and the rights to exercise it cease.