Firms Internationalize Through Two Mechanisms

question 32

Multiple Choice

Firms internationalize through two mechanisms:

• A)Exports and imports
• B)Trade in goods (visible trade)and trade in services (invisible trade)
• C)Direct and indirect investment
• D)Trade and direct investment.

---

Definitions:

Portfolio

A collection of investments held by an individual or an institution, which may include stocks, bonds, and other assets.

Negative Beta

A measurement of a stock's volatility indicating that it moves in the opposite direction of the overall market.

Gold Mining Company

A company that specializes in the exploration and extraction of gold from mines or ore bodies.

Industry Competition

The rivalry among companies within the same industry to gain more market share, customers, or profits.