A Particular Problem Faced by Software Companies in International Markets

question 306

Multiple Choice

A particular problem faced by software companies in international markets is:

• A) excessively restrictive tariffs
• B) piracy of their intellectual property
• C) difficult customs procedures
• D) inability to export to developing nations
• E) lack of interest in the product overseas

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Definitions:

Cost of Capital

The return rate that a company must achieve in order to compensate its investors for the risk of the investment, including the cost of equity and debt.

Industrial Furnace

A device used in manufacturing to provide high temperatures for processes such as melting metals or chemical reactions.

Real Option

The right, but not the obligation, to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a project.

Industry Standard

Established norms, specifications, or criteria within a particular industry, serving as a benchmark for quality and compliance.