A Potential Advantage to Initiating, Continuing, or Expanding International Operations

question 27

True/False

A potential advantage to initiating, continuing, or expanding international operations is that foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.

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Definitions:

Consumers

Individuals or groups that purchase goods and services for personal use rather than for manufacturing or resale purposes.

Producers

Entities that create, manufacture, or supply goods and services.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, intended to protect consumers by preventing prices from reaching excessively high levels.

Supply Curve

A graph that shows the relationship between the price of a good and the quantity of the good that producers are willing to supply.