When Considering Where to Export,advantages to Managers of Focusing on a Nation

question 126

Multiple Choice

When considering where to export,advantages to managers of focusing on a nation that is already a sizable purchaser of goods coming from the home country include the fact that

• A) the cultures of the two countries should be relatively similar and compatible.
• B) the climate for foreign direct investment in the importing nation is relatively favorable.
• C) export and import regulations are not insurmountable.
• D) the two countries are part of the same regional trade agreement.
• E) the countries have similar levels of economic development.

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Definitions:

Declines

Situations where quantities, values, or levels decrease over a period.

Unregulated Pure Monopolist

A market condition where a single firm dominates the market without any regulatory oversight, controlling the price and supply of a good or service.

MR = MC

A principle in economics that indicates the profit maximizing level of production is reached when marginal revenue equals marginal cost.

Marginal Revenue

The additional income earned by selling one more unit of a product, reflecting the value of increased sales volume.