In Deciding Whether to Invest Abroad, Management Must First Determine

question 33

Multiple Choice

In deciding whether to invest abroad, management must first determine whether the firm has a sustainable competitive advantage that enables it to compete effectively in the home market. The competitive advantage must be:

• A) firm specific.
• B) not easily copied.
• C) in a transferable form.
• D) all of the above

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Definitions:

Government Policies

Strategies and actions taken by a government to govern, direct, or regulate a community, country, or economy.

Theorem

A statement or proposition that is proven on the basis of previously established statements or propositions.

Externalities

Economic side effects or consequences of a commercial activity that affect other parties without being reflected in the costs of the goods or services involved.

Negative Externality

A cost that affects a party who did not choose to incur that cost or benefit from it, often considered a failure of the market.