Competing in the Markets of Foreign Countries Entails Dealing with Such

question 57

Multiple Choice

Competing in the markets of foreign countries entails dealing with such factors as:

• A) fluctuating exchange rates,country-to-country parallels in host government restrictions and requirements,and country-to-country variations in cultural,demographic,and market conditions.
• B) important country-to-country differences in consumer buying habits and buyer tastes and preferences.
• C) whether to customize the company's offerings in each different country market or whether to offer a mostly standardized product worldwide.
• D) the fact that product designs suitable for one country are sometimes inappropriate in another.
• E) All of these.

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Definitions:

Coase Theorem

Suggests that if property rights are clearly defined and transaction costs are low, parties will negotiate to solve externalities on their own.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit, often leading to market failures.

Private Sector

The part of the economy that is run by individuals and companies for profit and is not state controlled.

Transaction Costs

Transaction costs are the expenses incurred in buying or selling goods or services, which can include search and information costs, bargaining costs, and enforcement costs.