Which of the Following Statements Best Summarizes the Experience of American

question 7

Multiple Choice

Which of the following statements best summarizes the experience of American franchisors in foreign countries?

• A) Very few American franchisors of any size have had success in international markets.
• B) Large franchisors have had success in other nations, but newer and smaller franchisors have lacked the financial strength and reputation to succeed in global markets.
• C) The only nations in which American franchisors have achieved any success are Great Britain and Mexico.
• D) Both large and small franchises have found success in foreign countries by providing convenience and a predictable level of service and quality.

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Definitions:

Efficient Amount

This refers to the quantity of a good or service that maximizes social welfare, where the marginal benefit to consumers equals the marginal cost of production.

Marginal Benefit

The incremental benefit or pleasure derived from consuming one more unit of a good or service.

Efficient Level

The level of output where a firm or economy is maximizing its productivity and minimizing waste within its resources.

Tax

An obligatory financial contribution or different kind of levy enforced on an individual or entity by a government agency for the purpose of funding government activities and diverse public costs.