When and why do many American firms begin their global expansion efforts by exporting?
What will be an ideal response?
Many American firms begin global expansion when they get an order from a customer in another country. The U.S. market has usually been big enough that U.S. firms spend all their efforts on domestic demand. The second reason why firms begin by exporting is because it is less risky than other global expansion alternatives.
You might also like to view...
Under management contracting, a domestic firm ________
A) adopts management know-how from a foreign company B) manufactures the products of a foreign company C) exports its products to a foreign company D) provides financial capital to a foreign company E) exports management services to a foreign company
A ______ is a review of all of the tasks and requirements of the job, both good and bad.
A. day-to-day job preview B. external job preview C. realistic job preview D. preview job review
If the federal income tax rate were increased, the impact of the tax increase on acceptable investment proposals would be to (ignore the impact of the tax change on the cost of capital)
A) decrease the tax shelter from depreciation. B) decrease net present value but the internal rate of return would stay the same. C) increase net present value because the tax shelter from interest and depreciation becomes more valuable. D) decrease both net present value. and internal rate of return.
A Gantt chart is a useful tool for allocating limited resources among project activities
Indicate whether the statement is true or false