How Will a Business Firm Know If There Is a Demand

question 106

Short Answer

How will a business firm know if there is a demand for its product in another nation?
The company is willing to discuss royalty fees with other international firms.
There is a positive balance of payments.
A firm cannot know if such a demand exists.
The product is very successful in the company's home nation.
Due to the successful prior entry of a competitor firm with a similar product in the international market.

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Definitions:

Federal Government

The national government of a federated state, which shares sovereignty with the individual state or provincial governments.

Property Tax

A tax on the value of property, such as the value of a home.

Personal Taxes

Taxes levied on the income or property of individuals.

Personal Income

The total earnings of an individual from all sources before taxes, including wages, dividends, interest, and rents.