Which of the Following Is the Best Example of the Competitive

question 96

Multiple Choice

Which of the following is the best example of the competitive driver of international business activity?

• A) A manufacturing company that lobbies its home country government for protection against imports.
• B) A company that expands its local manufacturing facility in a foreign country in order to qualify for tax rebates.
• C) A company that searches for markets with rising gross domestic product per capita and population growth.
• D) A company that enters a foreign competitor's home market to distract them.
• E) A company that hires a host country manager to satisfy legislation that limits the number of expatriates that can be employed.

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Definitions:

Standard Cost System

An accounting system that uses predetermined costs for products or services to facilitate variance analysis and budgeting.

Direct Labour Hours

Total hours accumulated by workers directly involved in the fabrication process.

Direct Materials Inventory

The total cost of raw materials that are directly involved in the manufacturing of a product and are currently held in inventory.

Labour Rate Variance

A financial metric that measures the difference between the actual cost of labor and the expected (or standard) cost.