Which of the Following Is Not Linked to the Cost

question 140

Multiple Choice

Which of the following is not linked to the cost driver of international business activity?

• A) A manufacturing company that follows its customers to foreign markets to be able to supply them.
• B) A company that goes abroad through exporting to enhance production economies of scale.
• C) A company that goes abroad through exporting to spread R&D costs across a larger number of units of goods sold.
• D) A company that moves its manufacturing operations to another country that offers an export processing zone that has no taxation for products that are processed and re-exported.
• E) An accounting company that moves some of its tax preparation work from the United States to India to utilize workers who have English language skill but a lower salary range. This establishes foreign operations in markets where their principal accounts are located.

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Definitions:

Defensive Moves

Strategies employed by companies to protect their market share, revenue, or profitability from competitors.

Mixed Branding

a strategy where a company markets products under several different brands, often catering to different market segments.

Own Market

A term referring to the market where a company sells its products or services, often in contrast to competitor markets.

Reseller

An entity or person who buys products or services to sell them, rather than to use or consume them personally.