________ and ________ Would Be Uncontrollable Factors That a Firm

question 112

Multiple Choice

________ and ________ would be uncontrollable factors that a firm would need to consider when evaluating the return on investment of an international division.

• A)Manager's compensation;political climate
• B)Custom duties;cultural environment
• C)Required rate of return;legal requirements
• D)Manager's experience;currency stability

---

Definitions:

Mutual Interdependence

A situation in which a change in price strategy (or in some other strategy) by one firm will affect the sales and profits of another firm (or other firms). Any firm that makes such a change can expect its rivals to react to the change.

Price Competition

A market strategy where companies reduce prices to attract consumers, often leading to a race to the bottom.

Dominant Strategy

In a strategic interaction (game) between two or more players, a course of action (strategy) that a player will wish to undertake no matter what the other players choose to do.

Formal Agreements

Legally binding contracts or treaties between parties that outline specific obligations and rights.