To Enter Foreign Markets, Most Firms Begin with Which Strategy

question 69

Multiple Choice

To enter foreign markets, most firms begin with which strategy?

• A) Exporting
• B) Greenfield venture
• C) Joint venture
• D) Acquisition
• E) Direct investment

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Definitions:

Identical Costs

Refers to costs that are the same across different products, services, or processes.

X-Inefficiency

A situation in which a firm fails to utilize its resources efficiently because of a lack of competitive pressure.

Average Total Costs

The total cost of production divided by the quantity produced, representing the per-unit cost of producing a good or service.

Economies Of Scale

Operational scale increases lead to cost efficiencies for businesses, prominently reflecting in reduced production costs per unit as the amount of output grows.