The Establishment of Its Own Sales Company with Offices in Other

question 74

Multiple Choice

The establishment of its own sales company with offices in other countries to eliminate the middlemen and to better control marketing occurs in which stage of international development?

• A) Stage 1
• B) Stage 2
• C) Stage 3
• D) Stage 4
• E) Stage 5

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Definitions:

Total Variable Costs

The sum of all costs that vary directly with the level of production or output.

Total Fixed Costs

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

Variable Input

A factor of production, such as labor or raw materials, whose quantity can be changed easily by a business to adjust to the level of output.

Short Run

Short Run is a time period in economics during which at least one input is fixed while others are variable.