Using Domestic Plants as a Production Base for Exporting Goods

question 66

Multiple Choice

Using domestic plants as a production base for exporting goods to selected foreign country markets

• A)can be an excellent initial strategy to pursue international sales.
• B)can be a competitively successful strategy when a company is focusing on vacant market niches in each foreign country.
• C)works well when a firm does not have the financial resources to employ cross-market subsidization.
• D)is usually a weak strategy when competitors are pursuing multicountry strategies.
• E)can be a powerful strategy because the company is not vulnerable to fluctuating exchange rates.

Record and analyze business transactions and their effects on the accounting equation.

Prepare an owner’s equity statement.

Calculate net income or loss by analyzing changes in owner's equity.

Understand and apply accounting terminology relevant to sole proprietorships.

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