Moving into International Markets Is a Particularly Attractive Strategy to Firms

question 52

Multiple Choice

Moving into international markets is a particularly attractive strategy to firms whose domestic markets:

• A) demand a differentiation strategy for success.
• B) are limited in opportunities for growth.
• C) have developed unfriendly business attitudes toward the industry.
• D) have too much regulation.

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Definitions:

Consumers

Individuals or organizations that purchase goods or services for personal use or consumption.

Imperfect Information

A situation where all parties in an economic transaction do not have equal access to relevant information.

Marginal Benefit

Marginal benefit is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Marginal Cost

The growth in complete costs incurred by manufacturing an additional unit of a product or service.