In Competing in Foreign Markets, Companies Find It Advantageous to Concentrate

question 40

Multiple Choice

In competing in foreign markets, companies find it advantageous to concentrate their activities in a limited number of locations when

• A) there are significant scale economies in performing an activity.
• B) the costs of manufacturing or other activities are significantly lower in some geographic locations than in others.
• C) there is a steep learning or experience curve associated with performing an activity in a single location (thus making it economical to serve the whole world market from just one or maybe a few locations).
• D) certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages.
• E) All of the above.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a company's operating cycle, whichever is longer.

Retained Earnings

The portion of a company's profits that is held or retained and saved for future use, investments, or to pay debt, rather than distributed to shareholders as dividends.

Adjusted Trial Balance

A statement listing all accounts and their final balances after adjusting entries are made, used to prepare financial statements.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones.