Firms Who Wish to Go Global but Who Are Not

question 1

Multiple Choice

Firms who wish to go global but who are not ready to assume significant risk may resort to ____________ in order to compete internationally.

• A)licensing a local firm to manufacture the company's products
• B)acquiring a local operation
• C)government subsidized exporting programs
• D)setting up a local factory

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Definitions:

Revealed Preferences

is an economic theory that infers consumers' preferences based on their purchasing habits, assuming that their choices reveal their preference structure.

Francs

A currency that was previously used in countries like France, Switzerland, Belgium, and Luxembourg, with some forms still in use today in a limited capacity.

Consumption

The use of goods and services by households or the economy, often seen as a primary indicator of economic health.

Revealed Preferences

A concept in economics that studies consumer behavior based on the choices they make, revealing their preferences.