Both Import/export and Licensing Strategies Do Not Require Capital Outlays

question 208

True/False

Both import/export and licensing strategies do not require capital outlays in the form of investment in the foreign markets that are being served.

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Definitions:

Raw Material Purchases

Costs associated with buying materials that are directly used in the production of goods.

Credit Sales

Sales transactions in which the customer is allowed to pay for goods or services at a later date, creating accounts receivable for the seller.

Cash Disbursements

The total amount of cash payments made by a business, including expenses, purchases, and debt payments.

Material Purchases

The total cost of raw materials acquired for use in the production process.