If a Strategic Business Unit Is Recognized as a Cash

question 52

Multiple Choice

If a strategic business unit is recognized as a cash cow, it is advisable to:

• A) harvest the business.
• B) invest into the business to hold its current position.
• C) divest the business due to its low market share.
• D) maintain it till turns into a dog.

Describe the benefits and potential drawbacks of specialization and trade.

Analyze the reasons economists prefer free trade over protectionist policies.

Understand the criteria for engaging in international trade based on comparative advantage.

Evaluate the impact of productivity differences between countries on trade opportunities.

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Definitions:

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Upper Middle-Income

A classification of economies with gross national income per capita between the limits set by the World Bank or other defining bodies, indicating a relatively higher but not the highest income level.

Low-Income

Refers to individuals or families whose earning is below a certain threshold defined by national statistics, often leading to reduced access to goods and services.

Infant Mortality Rate

The number of deaths of infants under one year old per 1,000 live births in a given year.