One Important Concern a Company Has in Trying to Compete

question 80

Multiple Choice

One important concern a company has in trying to compete successfully in foreign markets is:

• A) convincing shippers to keep cross-country transportation costs low enough that the company can export its goods to foreign countries cheaply.
• B) whether it will have to integrate forward into wholesale and/or retail activities in order to gain visibility for its products in foreign countries.
• C) how it can gain location-based competitive advantage in locating its various value chain activities.
• D) how to convince local government officials to reduce tariffs on the imports of its goods into their country.
• E) developing the expertise to avoid the impact of fluctuating exchange rates.

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Definitions:

Present Value Index

A calculation that compares the present value of cash inflows to the initial investment, often used in capital budgeting.

Compound Interest

The calculation of interest on the initial principal and also on the accumulated interest of previous periods.

Average Rate of Return

A method of determining the profitability of an investment by dividing the average annual profit by the initial investment cost.

Total Income

The sum of all revenues and gains that a person or business receives over a period of time, before any expenses are subtracted.