Complicating Factors for a Global Business Include

question 143

Multiple Choice

Complicating factors for a global business include:

• A)what is legal in one country may not be legal in another country.
• B)what is ethical in one country may not be ethical in another country.
• C)a foreign government threatening to take over the company's plant.
• D)all of the above.

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economic Efficiency

A state in which resources are optimally allocated to serve each person in the best way while minimizing waste and inefficiency.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, stringent regulations, and established brand loyalty.

Brand Loyalty

A customer's consistent preference for one brand over all others, often reflected in repeated purchases.