Firms That Sell Industrial Goods in the International Market Should

question 14

Multiple Choice

Firms that sell industrial goods in the international market should focus on after-sales services because these services:

• A) are almost always more profitable than the actual sale of the good itself.
• B) require high levels of investment in training and development.
• C) need to be heavily advertised.
• D) cost the firm almost nothing.
• E) cannot be outsourced to other companies and must be provided by the firm itself.

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Definitions:

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, resulting in those who have higher incomes being taxed at a higher rate.

Progressive Tax

A taxation system where the tax rate increases as the taxable amount or income increases.

Proportional Tax

A tax system wherein the tax rate is fixed and applied uniformly to all taxpayers, regardless of their income level.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting those with lower incomes.