All of the Following Are Typical Reasons for Forming Cross-Border

question 59

Multiple Choice

All of the following are typical reasons for forming cross-border alliances EXCEPT ________.

• A) avoiding import barriers
• B) sharing R&D costs and risks
• C) gaining access to specific markets
• D) testing marketing campaigns overseas

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Definitions:

Specialization

The process whereby individuals, businesses, or countries focus on producing a limited range of goods or services to gain greater efficiency and productivity.

Price of a Dollar

A term not commonly used in economics or finance, potentially confusing but might refer to the value of the US dollar in terms of foreign currency exchange rates.

Trade Flow

Refers to the movement of goods and services between countries, indicating the import and export activities.

Exchange Rates

The value of one currency for the purpose of conversion to another; it determines how much of one currency can be exchanged for another currency.