Global Expansion Is Viewed as Necessary for Medium and Large

question 140

Multiple Choice

Global expansion is viewed as necessary for medium and large organizations for all of the following reasons except ________.

• A) that many domestic markets in developed countries are becoming saturated
• B) that efficiencies in all value-chain activities are linked across borders
• C) that knowledge is uniformly distributed around the world
• D) that customers themselves are becoming global

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Definitions:

Fixed Cost

Overhead expenses that remain constant regardless of the volume of goods or services produced by a business.

Sales Commissions

A form of payment to a salesperson for services rendered, which is often calculated as a percentage of the sales they have generated.

Chief Financial Officer

The senior executive responsible for managing the financial actions of a company, including financial planning, management of financial risks, and financial reporting.

NPV

A financial metric used to assess the profitability of an investment by calculating the present value of expected future cash flows.