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finlep [7]
2 years ago
12

The benefits of expanding into international markets include each of the following opportunities EXCEPT:______ a. increasing the

size of the firm's potential markets. b. favorable tax concessions and economic incentives by home-country governments. c. economies of scale and learning. d. location advantages.
Business
1 answer:
Virty [35]2 years ago
8 0

Answer:

b. favorable tax concessions and economic incentives by home-country governments.

Explanation:

Venturing in international trade offers a business the opportunity to expand its market. The company will be able to distribute and sell its products to new regions and territories.  A company will be able to grow its output, which results in economies of scale.  

Growth in output requires the company to do large scale production. Production cost unit per unit decreases as a business output increases. After breakeven, every other unit produced contributes to an organization's profitability. International markets create chances of getting better locations for setting up new branches or finding cheap materials.

A Tax incentive is not a reason for engaging in foreign markets. Even if incentives are there, they last for a few years. Home countries will hardly give concessions to businesses engaging in international trade.

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Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A wi
Ne4ueva [31]

Answer:

Option A is correct because the level of saving in percentage for company A is 2% (5000/250000). Whereas the level of saving in the company B is 1.5% which is lower than the savings of company A. This will increase the standard of life in the long run because greater the savings the greater is the amount invested in Financial assets which will decline the interest rate as the funds for investment are in excess it will decline the demand for loans. This investment will earn its investor more which will change his standard of life.

Remember standard of living is measured by:

GDP per capita= Total GDP/ Total population

So if the GDP per person is higher it means his saving are lower. And if the level of saving are lower then the standard of living will decline because the money available for investment is lower in amount. This will not save him enough to maintain his standard of living.

So its true because the level of saving rate of company A is higher this means the standard of living in the near future will also increase with faster pace.

8 0
2 years ago
Rob, Dave, and Kelly understand the financial risks involved in starting their own brewery; that's why they've established their
Darina [25.2K]
I do believe its A.. yeap its A
8 0
2 years ago
Read 2 more answers
When forecasting balance sheet financials, an unusually high forecasted cash balance suggests which of the following? A. Sales a
Inga [223]

Answer:

The correct option is E

Explanation:

If the business is forecasting the financials of the balance sheet and mostly the high forecasted balance of cash implies that the company or the firm could pay off the debt in the next or the following year.

The forecasted high cash balance most likely decrease the long term and the short term debt of the company in order to reduce the cash levels to a consistent level.

So, none of the above options provided is correct.

7 0
3 years ago
Assuming purchase costs are rising, determine which of the statements below are correct regarding the cost of goods sold under F
anzhelika [568]

Answer:

A

B

C

D

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

Weighted average cost method calculates the cost of goods sold as the weighted average of cost of inventory

In periods of rising prices, later purchased goods would have a higher price. As a result, LIFO would report a lower net income while companies using FIFO would report the highest gross profit and net income.

Because of the high net income reported under FIFO, tax paid would be the highest too

6 0
3 years ago
Eichholtz Company uses 10,000 units of a part in its production process. The costs to make a part are: direct materials, $12; di
slava [35]

Answer:

c) $40,000 to buy the part

Explanation:

For computing the better off first we have to compute the per unit cost which is shown below:

= Direct material per unit + Direct labor per unit + variable overhead + applied variable overhead

= $12 + $25 + $13 + $30 × 30%

= $12 + $25 + $13 + $9

= $59

The difference cost would be

= $59 - $55

= $4

Now the better off would be

= Number of units × difference cost

= 10,000 units × $4

= $40,000

3 0
3 years ago
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