Which of the Following Is NOT a Reason Why Crafting

question 96

Multiple Choice

Which of the following is NOT a reason why crafting a strategy to compete in one or more foreign markets is inherently complex?

• A) Because factors that affect industry competitiveness vary from country to country
• B) Because of the potential for location-based advantages to conducting value chain activities in certain countries
• C) Because different government policies and economic conditions make the business climate more favorable in some countries than others
• D) Because of the risks for shifts in currency exchange rates
• E) Because similarities in buyer tastes and preferences facilitate standardization of products and services

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Definitions:

APT

Stands for Arbitrage Pricing Theory, a model that predicts a security's returns using the linear relationship between its expected return and macroeconomic factors.

Factor Intensity

The measure of how much of a certain factor of production (labor, capital, etc.) is used in the production of a good or service.

APT Model

Arbitrage Pricing Theory Model, an alternative to the Capital Asset Pricing Model (CAPM), asserts that the expected return of a financial asset can be modeled as a linear function of various macro-economic factors or theoretical market indexes.

Security Returns

The gains or losses from investing in a security, usually expressed as a percentage of the initial investment.