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Harlamova29_29 [7]
3 years ago
15

Which of the following is a main reason for businesses to expand into foreign markets?

Business
1 answer:
Misha Larkins [42]3 years ago
7 0

Answer: A. To build brand value

Explanation:

By moving internationally, corporations have the ability to increase demand for their products, decrease the economic volatility from their home market, and develop new customers. In most cases foreign markets also allow companies to take advantage or larger margins and of less competition.

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Answer:

a. Operating Income = Sales - Production Cost - Depreciation Expense

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Operating Income = $11,400

b. Average Investment = (Initial Equipment Cost + Residual Value) / 2

Average Investment = ($60,000 + $0) / 2

Average Investment = $60,000 / 2

Average Investment = $30,000

c. Accounting Rate of Return = (Operating Income / Average Investment) * 100

Accounting Rate of Return = ($11,400 / $30,000) * 100

Accounting Rate of Return = 0.38 * 100

Accounting Rate of Return = 38%

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