Bakery French Breads Is Considering Entering a New National Market

question 69

Multiple Choice

Bakery French Breads is considering entering a new national market in Central America and is thinking of establishing a marketing subsidiary.Which of the following facts should be of concern to the firm?

• A)Local contract manufacturers are difficult to find.
• B)Local licensees are difficult to find.
• C)Local laws require the use of a local agent.
• D)None of the above

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Definitions:

Industry Equilibrium

A state where supply and demand in an industry are balanced, leading to stable prices and quantities.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial gain in excess of the opportunity costs.

Long-run Equilibrium

A state in which all firms in a market are earning zero economic profits, ensuring that no firm has an incentive to enter or exit the market.

Industry

Describes the aggregate of manufacturing or technically productive enterprises in a particular field, often named after its principal product.