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4 years ago

The first step a domestic firm takes when entering an international arena is usually to create an international division.

Business

1 answer:

vodomira [7]4 years ago

4 0

Answer:

The answer is: False

Explanation:

Whenever a company wants to go international it has a lot work to do before creating an international division. Several things must be done before, mostly research, for example:

Research if your product is know overseas, is there any possible market for it, are there any restraints for your products in those new markets.
Any legal constraint or logistical problem you have to consider.
Any local competition you have to worry about.
Does your product fit in a new culture.
And very many etceteras.

That should all be done before considering spending money on creating an international division.

Probably when the internet didn´t exist, communications were scarce, no Tv existed, people in one country didn´t know anything about other cultures, etc., a comp nay would have first created an international division to scout foreign markets but right now it doesn´t make sense.

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Choose the correct statement. A. Income tax creates a deadweight loss in the markets for capital and labor. B. Income tax is a t

mixer [17]

Answer:

The correct answer is option A.

Explanation:

Income tax is a tax imposed by the government on the income earned by the individuals. This income can be from capital and labor. It creates a deadweight loss in the market for labor and capital.

Deadweight loss is the loss to economic efficiency and production caused by a tax. The imposition of a tax creates a tax wedge, this tax wedge leads to a deadweight loss. Deadweight loss due to income tax is the loss of purchasing power or reductions standard of living due to tax.

The inefficiency or tax burden depends upon the elasticities of demand and supply. Whoever has the least elasticity will share most of the tax burden.

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4 years ago

The budget components for Park Company for the quarter ended June 30 appear below. Park sells trash cans for $12 each. Budgeted

Dmitry [639]

Answer:

$96,000

Explanation:

Production 26,000 units

Materials Purchase Budget

Production Materials Required (5×26,000 units) 130,000

Add Budgeted Closing Materials (50,000×20%×5) 50,000

Total Materials 180,000

Less Budgeted Opening Inventory (4,000×5) (20,000)

Budgeted Materials 160,000

Material Cost per pound $0.60

Total Material Cost $96,000

Therefore, the materials purchases budget will be for the month ending April 30 will be $96,000.

7 0

3 years ago

The lack of a national law requiring seat belts on school buses is a serious problem in the united states. last year alone, 437

yan [13]

By enforcement the safety in the schools

4 0

3 years ago

5,000 7.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 105 percent of par; the bonds ma

vitfil [10]

Answer:

10.53%

Explanation:

WACC = wE*rE + wP*rP + wD*rD(1-tax)

Market values;

Debt = 1.05 *5,000*1000 = 5,250,000

Preferred stock = 15,500 *107 = 1,658,500

Common equity = 105,000 *63 = 6,615,000

Total market value = 13,523,500

wE = 6,615,000/ 13,523,500 = 0.4891

wP= 1,658,500/13,523,500 = 0.1226

wD = 5,250,000/13,523,500 = 0.3882

Cost of capital;

Cost of common equity, rE using CAPM;

rE = 0.06 + (1.13*0.09) = 0.1617

rE = 16.17%

Cost of preferred stock = 6%

Cost of debt

using a financial calculator, input the following; N= 38, PV = -1050, PMT = 37.5,

FV =1000, then CPT I/Y = 3.51% . So annual rate = 3.51% *2 = 7.02%

WACC = (0.4891*0.1617) +(0.1226* 0.06) + [0.3882 *0.0702(1-0.31)]

WACC = 0.0791 + 0.007356 + 0.0188

WACC = 0.1053 or 10.53%

4 0

3 years ago

Which of the following savings options pays an interest rate that changes with the market rate of interest?

SashulF [63]

I am pretty sure that the answer is the money market account

5 0

3 years ago