All of the Following Statements About the Country of Origin

question 71

Multiple Choice

All of the following statements about the country of origin effect (COO) are true EXCEPT:

• A) COO effects are restricted to Europe.
• B) Asian consumers prefer domestic products over imports.
• C) the critical factor appears to be the place of manufacture rather than the location of the company's headquarters.
• D) COO effects do not change very much over time.
• E) psychographics make a difference.

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Definitions:

Cost Method

An accounting technique used to value inventory, usually at the lower of cost or market price, and investments in certain conditions.

Par Value Method

An accounting method used for issuing shares that assigns a nominal value (par value) to the shares, which may affect the accounting treatment of share issues.

Retiring Treasury Stock

The act of permanently removing previously bought-back shares (treasury stocks) from the market, reducing the company's available shares and total equity.