Which of the Following Is True of Basic Entry Decisions

question 63

Multiple Choice

Which of the following is true of basic entry decisions for an international firm into a foreign market?

• A) Greater value of a product in a foreign market translates into an ability to charge higher prices and/or to build sales volume more rapidly.
• B) An international firm should not rank countries in terms of their attractiveness because the parameter can change frequently.
• C) If an international business can offer a product that has not been widely available in a foreign market and that satisfies an unmet need, the value of that product to consumers is likely to be much lesser.
• D) The costs and risks associated with doing business in a foreign country are typically lower in less developed nations.
• E) Other things being equal, the benefit-cost-risk trade-off is likely to be unfavorable in politically stable nations that have free market systems.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, essential for assessing financial health.

Audited

The process of officially inspecting an individual's or organization's accounts by an independent body to ensure accuracy and compliance with laws and regulations.

Non-cash Items

Expenses or incomes recorded in the income statement which do not involve actual cash flow, such as depreciation, stock-based compensation, or provisions.

Cash Flow

The overall aggregation of money movement into and out of a firm, essentially determining its ability to quickly mobilize assets.