The Decision of What Entry Mode to Use Is Primarily

question 74

Multiple Choice

The decision of what entry mode to use is primarily based on all of the following factors EXCEPT:

• A) the industry's competitive conditions.
• B) the country's situation and government policies.
• C) the worldwide economic situation.
• D) the firm's unique set of resources, capabilities, and core competencies.

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Definitions:

Incremental Revenues

Additional income generated from a new project or decision, above and beyond existing revenues.

Incremental Variable Costs

Costs that vary with the level of output or activity, changing as the quantity produced changes.

Fully Depreciated

A status of an asset whose entire cost has been expensed with respect to depreciation, leaving its book value at zero except for salvage value, if any.

Excess Capacity

A situation where a company can produce more goods or services than currently demanded by its market.