Which of the Following Is True of the Basic Entry

question 87

Multiple Choice

Which of the following is true of the basic entry decisions a firm must make before a firm contemplates foreign expansion?

• A) The long-run economic benefits of doing business in a country are solely a function of the number of consumers in the market.
• B) The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.
• C) The costs and risks associated with doing business in a foreign country are typically higher in economically advanced and politically stable democratic nations.
• D) The benefit-cost-risk trade-off is likely to be most favorable in politically unstable countries.
• E) All the nation-states in the world hold the same profit potential for a firm contemplating foreign expansion.

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Definitions:

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Projective Test

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