The Simplest and Least Expensive Way to Conduct International Business

question 120

Multiple Choice

The simplest and least expensive way to conduct international business is through:

• A)foreign licensees.
• B)the World Wide Web.
• C)joint ventures.
• D)trade intermediaries.

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Definitions:

Marginal Cost

Marginal Cost refers to the increase in total production cost that arises from producing one additional unit of a good or service.

Economic Profits

The surplus achieved when the revenue from business activities exceeds both the explicit and implicit costs, differing from accounting profits by considering opportunity costs.

Accounting Profits

The total revenue of a company minus total explicit costs; the profit figure reported in financial statements.

Marginal Revenue

The additional income received from the sale of one more unit of a product or service.