Which of the Following Theories Identifies the Non-Transferability of Resources

question 30

Multiple Choice

Which of the following theories identifies the non-transferability of resources as a reason for international business?

• A) theory of comparative advantage.
• B) imperfect markets theory.
• C) product cycle theory.
• D) none of the above

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Definitions:

Residual Income

The amount of income that exceeds the minimum rate of return expected by a company or investor.

Performance Measure

Metrics or benchmarks used to gauge an individual's, department's, or organization's performance against expected results or goals.

Profit Margin

A financial ratio used to assess a company's profitability by dividing net income by revenue, demonstrating the percentage of revenue that constitutes profit.

Income From Operations

The income earned from a company's everyday core business operations, excluding income from investments and other non-operational sources.