Location-Specific Advantages for a Firm Are Those That Arise from

question 77

Multiple Choice

Location-specific advantages for a firm are those that arise from

• A) acquiring the home markets of foreign firms that threaten a firm's domestic market.
• B) gaining a commanding position in one market and using them to subsidize competitive attacks in other markets.
• C) preferring exporting over licensing in order to retain control over know-how, manufacturing, marketing, and strategy.
• D) utilizing resource assets that are tied to a particular foreign location and valuable enough to be combined with the firm's own unique assets.
• E) franchising and licensing.

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Definitions:

Accumulated Depreciation

The total depreciation of a tangible asset up to a specific date, reducing its book value.

Other Income/Expense

Gains or losses from non-operational activities, distinct from the core business operations’ revenues and expenses.

Gain

The profit realized from the sale of assets or investments for more than their original purchase price.

Sale of Equipment

A transaction involving the disposal of machinery or other equipment used in business operations, typically recorded as a gain or loss.