That Tata Motors Should Stay in India and Export Its

question 26

Multiple Choice

That Tata Motors should stay in India and export its cars round the world shows that

• A)where a firm's competitive advantage is based on national resource advantages it should not move production abroad.
• B)if a firm's advantage is based on a strong local market it should keep production there.
• C)exporting is the optimal strategy for tata.
• D)most companies should follow the cost leader's example.

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Definitions:

Expected ROE

The projected return on equity, which measures a company's efficiency at generating profits from every unit of shareholder's equity.

Dividend Growth Rate

The annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid out, often used to fund growth projects.

Intrinsic Value

The actual, underlying worth of an asset, investment, or company based on fundamental analysis without regard to its market value.