The Key Factors That Are Important in a Firm's Decision

question 19

Multiple Choice

The key factors that are important in a firm's decision to invest overseas are:

• A) Trade barriers, perfect labor market, and tangible assets.
• B) product integration, product life cycle, and shareholder unification services.
• C) profit maximization, global prestige, and competition.
• D) Trade barriers, imperfect labor market, intangible assets, vertical integration, product life cycle, and shareholder diversification.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity, often aimed at protecting consumers.

Shortage

A situation where the demand for a product or service exceeds the supply available at a given price.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.

Government Imposes

Refers to regulations, taxes, or policies that a government enforces or puts into effect in order to manage the country's affairs.