As Firms Begin Exporting to Foreign Clients and Become What

question 59

Multiple Choice

As firms begin exporting to foreign clients and become what Alder calls "international corporations", they must:

• A)Increase the standardization of products and services
• B)Adapt their products but not their approach to those of the local market
• C)Adapt their approach and products to those of the local market
• D)Adapt their approach but not their products to those of the local market

---

Definitions:

World Series

The annual championship series of Major League Baseball in North America, contested since 1903 between the American League and National League champions.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive, due to market price.

Firm's Willingness

A company's propensity to engage in certain actions based on its economic interests and goals.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of paying for a product or service and the actual amount they end up spending.