A Company Is in the Second Stage of Internationalization When

question 134

Multiple Choice

A company is in the second stage of internationalization when:

• A) the company moves some of its operations out of the home country.
• B) the company has production and assembly facilities in several countries and is part of strategic alliances with other international companies.
• C) the company's operations are highly decentralized, there is little allegiance to the country of origin, and its managers see themselves as citizens of the world.
• D) a firm expands into foreign markets but retains its production facilities in the home country.

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Definitions:

Accounts Payable

An account representing short-term liabilities to suppliers or creditors for goods and services received but not yet paid for.

Inventory

The goods and materials that a business holds for the ultimate goal of resale or production.

Cost of Goods Sold

The immediate expenses connected to the manufacturing of goods a company sells, such as materials and labor.

Corporate Life Cycle

A concept that describes the progression of a company through stages of growth, maturity, and decline or renewal.