Most Companies Become Involved in Direct Exporting When

question 10

Multiple Choice

Most companies become involved in direct exporting when

• A)foreign governments believe that they will benefit the most from allowing the entry of direct exports.
• B)emerging markets in foreign countries become economically viable.
• C)they believe their volume of sales will be sufficiently large and easy to obtain so that they do not require intermediaries.
• D)when the domestic market become saturated with competing products and services.
• E)evolving technologies in foreign countries come online.

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Definitions:

Discount Rate

This rate is applied in the framework of DCF analysis for the purpose of calculating the current value of foreseeable cash flows.

Compounded Annually

Compounded annually refers to the calculation and addition of interest to the principal sum of a loan or deposit once every year.

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Savings Accounts

Bank accounts that earn interest over time, allowing individuals to deposit funds for future use.