Which of the Following Is Likely to Be a Major

question 33

Multiple Choice

Which of the following is likely to be a major long?run competitive advantage of a U.S.multinational?

• A)a decline in the real value of the U.S.dollar
• B)access to low?cost foreign raw materials
• C)its ability to quickly adapt its products and technology in line with changing market conditions
• D)offshore banking facilities located in the Gulf of Mexico

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Definitions:

Markup

The difference between the cost of a good or service and its selling price, represented as a percentage of the cost.

Inventory Transfers

The movement of goods from one location to another, which can involve changes in ownership within the same company or between different entities.

Effective Income Tax Rate

The average rate at which an individual or corporation is taxed, calculated by dividing total tax expense by taxable income.

Accrual-based Net Income

The measure of a company's financial performance that includes all earned revenues and incurred expenses, recognized as they are earned or incurred, rather than when cash is received or paid.