Which of the Following Statements Is True of the Country

question 30

Multiple Choice

Which of the following statements is true of the country factors that govern international business?

• A) Relative factor costs should be considered when selecting a country for production.
• B) Centralized production is the most suitable method of doing international business.
• C) Exchange rates are not a significant factor that determines the selection of a country.
• D) Decentralized manufacturing is the most suitable method of doing international business.

---

Definitions:

Portfolio Beta

A measure of the volatility of a portfolio compared to the market as a whole, indicating the expected percentage change in a portfolio's value for a 1% change in the market.

Alpha

A measure of the active return on an investment, gauging how much a portfolio or fund outperforms or underperforms its benchmark index.

Hedge Fund

An investment fund that employs various strategies to produce high returns, including leverage, short-selling, and derivatives, accessible typically to wealthy investors.

Incentive Bonus

A form of additional compensation paid to an employee as a reward for achieving certain goals or exceptional performance.