Firms Who Wish to Go Global but Who Are Not

question 1

Multiple Choice

Firms who wish to go global but who are not ready to assume significant risk may resort to ____________ in order to compete internationally.

• A)licensing a local firm to manufacture the company's products
• B)acquiring a local operation
• C)government subsidized exporting programs
• D)setting up a local factory

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Definitions:

Erosion

The gradual loss or decline of an economic or business value over time.

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public sector.

Book Value

The net value of a company's assets, as recorded on the balance sheet, minus liabilities and intangible assets like goodwill.

Source Of Cash

Refers to the origination of funds in a business, which could include operations, financing activities, or investment activities.