The Choice of Foreign Location, at Times, Generates Unique Benefits

question 45

Multiple Choice

The choice of foreign location, at times, generates unique benefits for the organization, referred to as:

• A)global efficiency.
• B)location advantages.
• C)local responsiveness.
• D)foreign direct investment.
• E)entrepreneurship.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from revenue.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes.

Interest Expense

The cost incurred by an entity for borrowed funds.

Debt/Equity Ratio

A financial metric showing the balance between the amount of equity provided by shareholders and the debt incurred to support a company's assets.