In a Waterfall Approach to International Expansion, ________

question 141

Multiple Choice

In a waterfall approach to international expansion, ________.

• A) firms enter countries gradually in a sequence
• B) firms enter those countries first where the demand for the product is greatest
• C) countries are entered based upon the availability of government subsidies
• D) firms enter those countries first where the supply of raw material is greatest
• E) countries are entered based upon ease of entry

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Definitions:

Debt And Equity

The two main types of financing for companies, where debt involves borrowing money to be repaid and equity involves selling a stake in the company.

Capacity

The highest amount of production a business can maintain during a specific timeframe under regular conditions.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender in case of default.

Corporate Angel

A benefactor, often a company, that provides support or rescue financing to help a struggling business or start-up.