Refer to the Passage Below to Answer the Questions That

question 85

Multiple Choice

Refer to the passage below to answer the questions that follow.
Acme, Inc. is a manufacturer of industrial goods, such as ball bearings, filters, and valves. Acme's target market is manufacturers who purchase these goods to go into the systems that they manufacture for their customers, such as power plants, heating and cooling systems, and ships. Additionally, even though Acme is not a very large manufacturer and has never sold a product internationally, it intends to go international with a valve for which it recently received a patent and that is superior to any offered anywhere in the world.
-What is the first stage in international market development that Acme will most likely pursue to expand into other countries?

• A)exporting
• B)internationalization
• C)globalization
• D)regionalization
• E)centralization

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Definitions:

Utility Function

A mathematical representation that ranks an individual's preferences over a set of goods and services, based on the level of satisfaction or utility derived.

Optimal Utility Rule

A principle in consumer theory stating that consumers allocate their income in a way that maximizes their total utility, given their budget constraint.

Indifference Curve

A graph representing combinations of goods or services among which a consumer is indifferent, showing the same level of utility for each point along the curve.

Utility Level

An assessment of contentment or joy obtained by a customer from using products and services.