Which Is Not True Regarding Geographic Diversification and Firm Performance

question 15

Short Answer

Which is not true regarding geographic diversification and firm performance?
a. U-shaped relationship at low level of internationalization.
b. Initially a negative effect of international expansion on performance.
c. Affected by the liability of foreignness.
d. Inverted-U shape at moderate to high levels of internationalization.
e. Positive only at high levels of internationalization.

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Definitions:

Materials Cost

The total expense to an entity for all materials used in the production of a product or service.

Break-even Chart

A graphical representation used in financial analysis to show the point at which total costs and total revenue are exactly equal; thus, there is no loss or gain.

Break-even Point

The financial state where total costs and total revenues are equal, meaning there is no net loss or gain, and one has "broken even."

Break-even Chart

A graphical representation showing the relationship between total costs and total revenue at various levels of output, pinpointing where no profit or loss occurs.