Which of the Following Is an Internal Management Factor That

question 4

Multiple Choice

Which of the following is an internal management factor that companies need to consider as they decide to do business internationally?

• A) The mode of entry into new countries
• B) The cost of raw materials and resources
• C) Local business practices
• D) Industrial policies

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Definitions:

Rational Behavior

Human behavior based on comparison of marginal costs and marginal benefits; behavior designed to maximize total utility. See rational.

Cognitive Biases

Systematic patterns of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Behavioral Economists

Experts in a field of economics that combines insights from psychology to understand how people make economic decisions.

Faulty Heuristics

Cognitive shortcuts that lead to errors in judgment or decision-making due to biases or flawed logic.