A disadvantage of a joint venture arrangement when entering a new global market is that

A. the firm entering the foreign market must pay royalties to the other firm.
B. the two companies may disagree about policies.
C. intermediaries have the potential to harm the brand.
D. this method is likely to provide the fewest subsidies from the host country's government.
E. one of the companies forgoes control over its product.


Answer: B

Business

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Figure 8-8 Suppose the government imposes a $10 per unit tax on a good. One effect of the tax is to

A. create a deadweight loss of $60. B. reduce producer surplus by $72. C. reduce consumer surplus by $108. D. All of the above are correct.

Business

Sometimes called a sensitivity analysis, a what-if analysis allows you to study how changing one or more values affects the results.  Please briefly describe the following terms related to performing a what-if analysis: decision variables, constants, and output variables.

What will be an ideal response?

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What does this sentence mean? "Their fungible goods became confused."

a. Identical property of two or more persons was mixed together in way that they became indistinguishable. b. The trained dog became puzzled. c. A merchant seller breached a specified duty to a non-merchant buyer. d. Several warranties that are usually provided in the sale of goods by a merchant are not available in a specific transaction because the time involved was insufficient to allow for any recovery of injury proximately caused by a breach of duty.

Business

The best way to measure multicollinearity is using the ________

A) factor of sums B) variance inflation factor C) standard deviation D) correlation matrix

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