Once a Company Has Decided to Enter the Global Marketplace

question 67

Multiple Choice

Once a company has decided to enter the global marketplace, it must select a means of market entry. All of the following are the general options except which?

• A) licensing
• B) exporting
• C) direct investment
• D) joint venture
• E) cooperative

---

Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales over a certain period, such as rent or salaries.

Variable Costing

An approach in accounting that takes into account only the variable aspects of production costs (such as direct materials, direct labor, and variable manufacturing overhead) in the computation of product prices.

Net Operating Income

Net Operating Income is a measure of a company's profitability from its regular business operations, excluding income and expenses from interest, taxes, and other non-operational activities.

Fixed Manufacturing Overhead

Regular, constant expenses related to the production process that are not affected by the level of goods produced, such as rent and salaries of management.