Identify a True Statement About Export Arrangements in the Context

question 34

Multiple Choice

Identify a true statement about export arrangements in the context of initial division structure.

• A) Manufacturing firms with technologically advanced products usually avoid an export arrangement as a first choice.
• B) Firms can reduce the risk and size of investment in establishing significant international operations using an export arrangement.
• C) If a company has a broad product line, the export manager usually reports directly to the head of marketing and international operations are coordinated by this department.
• D) If a company has a narrow product line, the export manager will head a separate department and often report directly to the president.

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Definitions:

Marginal Utility

The additional satisfaction or utility gained from consuming an additional unit of a good or service.

Utility Per Dollar

Represents the amount of satisfaction or pleasure received per unit of expenditure.

Good

A tangible or intangible product that can satisfy a need or desire, and is transferable from one person to another.

Budget Constraint

The limits imposed on household choices by income, wealth, and product prices.