The Lowest Cost and Lowest Risk Way to Enter a Foreign

question 37

Multiple Choice

The lowest cost and lowest risk way to enter a foreign market is through

• A) a joint venture.
• B) licensing.
• C) management contracting.
• D) a direct investment.
• E) exporting.

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the taxpayer's total income, expressed as a percentage.

Dollar Tax Liability

The amount of tax payable to the government, measured in dollars, by an individual or corporation.

General Sales Tax

A broad-based tax imposed on sales of goods and services, typically at the point of sale.

Laffer Curve

A theoretical representation showing the relationship between tax rates and the amount of tax revenue collected by governments.