The "Reaching Beyond Our Borders" Box in Chapter 2, Explains

question 98

Multiple Choice

The "Reaching Beyond Our Borders" box in Chapter 2, explains the changing business climate in other nations. What kinds of experiences are U.S. based companies facing abroad?

• A)Companies are only benefitting when they set-up business in a nation with a similar economic and/or political system as the home-based business.
• B)Companies such as U.S. based General Motors is competing well in Japan, but having a difficult time in Mexico.
• C)For some food franchisors such as Yum Brands, the economic and political systems are not preventing them from growing the business abroad.
• D)Differentiating oneself abroad is detrimental because socialist nations seek equality, even in food products and advertising.

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Definitions:

Price to Capacity

The pricing strategy based on the production capacity of a company, often used in industries with significant fixed costs.

Parking Rates

the fee charged for the use of a parking space, typically determined by duration and location.

Pricing Strategy

A plan or approach adopted by a business to set prices for its products or services to achieve specific marketing objectives.

LRMC

Long-Run Marginal Cost, which is the increase in cost a company faces to produce one additional unit of output when all factors of production are variable.