What Is the Primary Reason for a Firm to "Go

question 89

Multiple Choice

What is the primary reason for a firm to "go international" (i.e.,engage in foreign direct investment) ?

• A) avoid government regulations
• B) increase markets
• C) profit
• D) keep pace with competitors
• E) win hearts and minds

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Definitions:

Adequately Paid

Compensation that meets or exceeds the value of the work performed or the qualifications of the individual.

Utility Function

This describes a formula used in economics to quantify the happiness or satisfaction obtained by a consumer from consuming goods and services.

Substitution Effect

The alteration in how goods are consumed as a result of shifts in relative prices, while maintaining the same level of satisfaction for the consumer.

Giffen Good

A product that sees an increase in demand as its price rises, contrary to the law of demand, typically due to the absence of close substitutes and the product being an inferior good.