When Attempting to Market a Domestic Product in an International

question 40

Multiple Choice

When attempting to market a domestic product in an international market,what typically has to happen?

• A) The product must be priced higher because of currency exchange rates.
• B) The product must have major redesign work done.
• C) The home country distribution system must be retrained for the international market.
• D) The product must have an existing close competitor in the intended market.
• E) The advertising campaign must be consistent with those used in the home country.

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Definitions:

Allowance Method

An accounting technique used to estimate and account for bad debts, allowing companies to anticipate uncollectible accounts receivables.

Bad Debts Expense

An expense account reflecting the value of sales that were made on credit and are unlikely to be collected.

Income Statement Approach

A method to estimate bad debts expense by focusing on the income statement and adjusting the allowance for doubtful accounts to reach a desired net realizable value.

Bad Debts Expense

The cost associated with the estimated amount of receivables that a company is unable to collect from its customers.