Which of the Following Are Reasons Why Companies Move into International

question 20

Multiple Choice

Which of the following are reasons why companies move into international operations?

• A) To take advantage of lower production costs in regions where labor costs are relatively low.
• B) To develop new markets for the firm's products.
• C) To better serve their primary customers.
• D) Because important raw materials are located abroad.
• E) All of the above.

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Definitions:

Credit Sales Transactions

Transactions where goods or services are sold to a customer with an agreement that payment will be made at a later date.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real-time, continuously updating inventory balances.

Purchase Returns

Goods returned to a supplier from a buyer due to issues like defects or dissatisfaction, often leading to a refund or credit.

Periodic System

An inventory accounting system where updates to inventory levels and cost of goods sold are made at the end of an accounting period.