What is meant by the cannibalization of an export market?
What will be an ideal response?
Answer: When you choose to change how you service a market to which you are exporting, either because you are building a new plant in the foreign country or you are expanding production in an existing plant, you would like to know the incremental profitability of this new project. Cannibalization of exports refers to the lost exports in this market that you are now serving differently if no market can be found for the goods that were formerly being exported to that country. These lost exports could be from the parent or from another one of its foreign subsidiaries in a different country. The lost profits on these exports must be considered to be a cost of accepting the new project. If the exports that were formerly being sent to the country can be sold elsewhere in the world, there is no cannibalization.
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On July 1, a company paid the $4800 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31?
A. $4800. B. $3600. C. $2000. D. $1200. E. $2400.
Simon is an attorney who has been hired by Naptune, Inc to defend against claims of profiteering. While discussing the charges with Mark, who is an employee of Naptune, Simon learns that Naptune is about to engage in profiteering again
In this scenario, which of the following statements is true? A) Simon is legally obliged to inform the police about any future criminal activities of Naptune, Inc. B) Simon cannot legally include this information in his work product and inform the court. C) Simon can only divulge this information to the police if Mark explicitly permits it. D) Simon can include this in the work product, but can choose not to inform the authorities.
Which of the following is an idea that you can incorporate into an effective beginning paragraph in a bad-news message??
A) ?When there is positive and negative information to be conveyed, state the negative news first. B) ?Introduce the refusal of a current request by referring to the initial transaction. C) ?Begin the refusal with a statement that leads the audience to expect good news. D) ?Always present the main idea in the first statement of the message.
Dividends paid to stockholders are a business expense.
Answer the following statement true (T) or false (F)