Which of the Following Is True of the Demand Conditions

question 48

Multiple Choice

Which of the following is true of the demand conditions described in Porter's diamond model?

• A) Early market saturation puts extreme pressure on a company to expand, which leads to inappropriate establishment in foreign countries that destabilize the company.
• B) Early home demand fails to anticipate international demand and hence gives foreign rivals the advantage of getting established in an industry sooner than local firms.
• C) Slow home-market growth is an incentive for companies to invest in and adopt new technologies, and to build large, efficient facilities.
• D) The size and pattern of growth of home demand are important only if the composition of the home demand is sophisticated and anticipates foreign demand.

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Definitions:

Interest

The cost of borrowing money or the return on investment capital, often expressed as a percentage rate over a period of time.

Adjusted Cash Balance

The cash balance recorded in accounting books after considering outstanding checks and deposits in transit, ensuring it matches the actual bank balance.

Check Register

A record book or electronic log used to track checks written, deposits made, and current account balances.

Bank Statement

A document or electronic record issued by a bank summarizing a customer's transactions and current balance over a specific period.