Which of the Following Is True of International Business

question 29

Multiple Choice

Which of the following is true of international business?

• A) By diversifying the places where its products are made, a company can soften the impact of price increases or supply shortages that may occur in any one country.
• B) Operating in multiple countries can maximize the impact of economic swings an individual company may experience over the years.
• C) When a company conducts business globally, external factors are consistent across companies and even industries.
• D) When operating globally, companies rely on the fact that the government of a country will not come along and take their property without warning or justification.

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Definitions:

Normal Good

A good or service whose consumption increases when income increases and falls when income decreases, price remaining constant.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, signifying how the demand for a good can stretch or change.

Senior-Citizen Discounts

Reduced prices offered to elderly individuals, typically those aged 65 and over, as a benefit for their age.

Cash Rebates

Refunds offered to consumers as an incentive to purchase a product or service.