Based on Observations of Firms That Have Successfully Invested Abroad

question 3

Multiple Choice

Based on observations of firms that have successfully invested abroad, we can conclude companies are more competitive when:

• A) facing sophisticated and demanding customers in the home market.
• B) surrounded by a critical mass of related industries and suppliers.
• C) located in countries that are naturally endowed with the appropriate factors of production.
• D) All of the above are true.

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Definitions:

Compounded Quarterly

Refers to the application of the compound interest rate to an investment or loan on a quarterly basis.

Loan Balance

The remaining amount of money that a borrower must pay on a loan at any given time.

Compounded Semi-annually

Interest calculation method where interest is added to the principal twice a year, increasing subsequent interest calculations.

Loan Payment

The amount of money required to be paid back periodically (usually monthly) on a loan, including both principal and interest.