Which of the Following Statements Is True of an International

question 28

Multiple Choice

Which of the following statements is true of an international strategy?

• A) It enables firms to leverage their home-based core competencies in foreign markets.
• B) It is advantageous when firms face high pressures for both local responsiveness and cost reductions.
• C) It relies on joint ventures to reap economies of scale by accessing a larger market.
• D) It effectively protects a firm from exchange rate fluctuations.

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Definitions:

Sale Of Investments

The process of selling investment assets such as stocks, bonds, or real estate, typically to generate cash or realize gains.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing the asset's consumption or the loss of its value over time.

Net Income

The total earnings of a company after subtracting all expenses from revenue, including taxes and operating costs, often referred to as the bottom line.

Indirect Method

The indirect method is a widely used approach for preparing the cash flow statement, where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.