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:

Interest Rates

The cost of borrowing money or the return on investment, expressed as a percentage, that lenders charge borrowers over a specified period.

Values of Bonds

The worth or price of a bond, influenced by interest rates, the bond's credit quality, and the duration until maturity.

Perpetuities

A financial instrument that provides an infinite stream of identical payments.

Secondary Sources

Publications or materials that interpret, analyze, or summarize information from primary sources.