Assume a Firm Plans to Expand Internationally

question 46

Multiple Choice

Assume a firm plans to expand internationally.If its managers wish to avoid pitfalls caused by differences in "silent language," they should consider differences in ________.

• A)normal proximity during conversations
• B)degree of detail expected in written contract
• C)the meaning of slang words during presentations
• D)importance of adherence to schedules

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Definitions:

Net Capital Outflow

The difference between a country's purchase of foreign assets and the sale of domestic assets to foreigners in a given time period.

Real Exchange Rate

The nominal exchange rate adjusted for differences in price levels between two countries, showing how many units of a foreign product can be purchased with one unit of a domestic product.

Foreign Direct Investment

An investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

Net Capital Outflows

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners, indicating the flow of capital from a country.