Which of the Following Best Explains Why Many Foreign Companies

question 76

Multiple Choice

Which of the following best explains why many foreign companies in China experience significant financial losses?

• A) China lacks the financial and legal systems needed to support the country's foreign trade.
• B) China's local market is not large enough to support its extensive exporting to the U.S.
• C) China's government mandates that workers receive high wages and benefits.
• D) China's exchange rate changes too frequently for U.S. businesses to compete.

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Definitions:

Sale of Equipment

A transaction involving the disposal of machinery or other equipment used in business operations, typically recorded as a gain or loss.

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.

Intangible Assets

Assets that lack physical substance and represent economic benefits, such as patents, copyrights, and brand recognition.

Fixed Assets

Long-term assets bought for use in the operation of a business, not intended for resale, such as machinery, buildings, and vehicles.