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:

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole, with a value greater than 1 indicating higher risk and a value less than 1 indicating lower risk.

Treynor Measure

A metric for assessing the returns of an investment portfolio, adjusting for the risk taken as measured by beta.

Beta

A measure of a stock's volatility in comparison to the overall market's volatility, indicating the risk associated with investing in the stock.

Serial Correlation

The relationship between a data series and a lagged version of itself over consecutive time intervals.