The Establishment of a Global or International Presence by an FI

question 104

Multiple Choice

The establishment of a global or international presence by an FI can be achieved in all but which of the following ways?

• A)Selling financial services from a domestic office to a domestic customer who has commercial activities in a foreign country.
• B)Selling financial services to a foreign customer through subsidiary companies in a foreign country.
• C)Selling financial services through a branch,agency,or representative office.
• D)Selling financial services from domestic offices to foreign customers.

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Definitions:

Economies Of Scope

Cost advantages that result from a firm's ability to produce multiple products more efficiently together than separately.

Seasonal Demand

Fluctuations in the demand for certain products or services that occur at specific times of the year.

Diseconomies Of Scope

Exist when the cost of producing two products jointly is more than the cost of producing those two products separately.

Economies Of Scope

Cost advantages that a business achieves by producing a wider variety of products, rather than specializing in a single product or service.