The Key Decision Factors That Pertain to Where an International

question 39

Multiple Choice

The key decision factors that pertain to where an international firm locates its manufacturing facilities can be grouped under three broad headings.These are:

• A)political factors,economic factors and legal factors.
• B)country factors,technological factors and product factors.
• C)product factors,service factors and labour factors.
• D)language factors,cultural factors and transportation factors.

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Definitions:

Intercompany Sale

Transactions that occur between two entities within the same corporate group, which are eliminated during consolidation to avoid double-counting in financial statements.

Mark-Up

An amount added to the cost price of goods to cover overhead and profit.

Impairment Loss

The amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, necessitating a write-down.

Effective Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing the total taxes paid by the taxable income.