An Organization Decides to Go International

question 39

Multiple Choice

An organization decides to go international.Which of the following steps should it take to do so with a minimal investment?

• A) It should indulge in global sourcing.
• B) It should indulge in licensing.
• C) It should indulge in franchising.
• D) It should indulge in forming strategic alliances.

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Definitions:

Losses

Financial reductions resulting from the operation of a business, particularly when expenses exceed revenues.

Shut Down

In economics, shut down refers to a short-term decision by a firm to cease production because operating costs exceed the revenue generated, particularly when prices fall below variable costs.

Increasing-Cost Industry

An industry in which costs of production increase as output is increased, often due to factors like limited resources or higher input prices.

LRAC Curve

Stands for Long-Run Average Cost curve, which shows the lowest average cost of producing different levels of output when all inputs, including capital, are variable.