<span>multinational corporation
Let's look at the available options and see what fits best.
multinational organization
* Technically, all companies are organizations, but generally this is reserved for organizations that aren't commercial enterprises. So this is not the correct answer.
foreign firm conglomerate
* This one fails on several fronts, but the most basic is conglomerate which implies multiple lines of business. We're just dealing with a restaurant chain. So this is the wrong answer.
multinational corporation
* This looks good. The company is obviously multinational since it has restaurants in 25 countries. And it is a company. Pretty clearly this is the right choice.
foreign partner
* A foreign partner is an other company that's based in a foreign country. For instance, some manufacturers may get parts from a foreign company to use in their own products. So there's a relationship between the local and foreign companies. But they're not owned and operated by the same overall group. So this is the wrong answer.</span>
Answer:
Common market.
Explanation:
In this scenario, Countries A, B, and C are at a particular level of economic integration. All these countries enjoy reduced or eliminated internal tariffs on trade between them and have added a common external tariff on products imported from countries outside the union. If these countries remove all restrictions on the free flow of capital and labor among themselves, they represent a common market.
A tariff can be defined as a form of taxation employed by a country and applies to imported goods or services from another country.
A common market refers to a formal organization of countries who have collectively agree to trade freely with one another with reduced or eliminated internal tariffs but imposes a common external tariff on trade with other countries. It was founded in 1958 and was made up of countries like Luxembourg, France, Belgium, Netherlands, West Germany and Italy.
<em>The main purpose and advantage of the common market is that, it avails member countries the opportunity to move goods, people, services and capital freely. </em>
Costs that have already been incurred and cannot be avoided regardless of what a manager decides to do are sunk costs.
<h3>A Sunk cost is what?</h3>
- Money that has already been spent and cannot be recouped is referred to as a sunk cost.
- The sunk cost phenomenon in business is an example of the notion that one must "spend money to make money."
- A sunk cost is distinct from potential future expenses a company can incur, such as choices on the price of products or the cost of purchasing inventories. Sunk costs are disregarded while making future business decisions since they won't change regardless of the choice made.
<h3>Give an example of Sunk cost.</h3>
- Let's say XYZ Clothing produces baseball gloves. It leases a factory for $5,000 each month, and the machinery was paid in full for $25,000 before. The business makes a simple glove model for $50 and sells it for $70. The producer can make a $20 profit on each basic model sold. As an alternative, it can carry on with production while spending an additional $15 and sell a premium model glove for $90.
- The company weighs the $20 increase in revenue against the $15 additional cost when deciding whether to produce the premium glove to generate a $5 profit. The cost of the factory lease and the cost of the equipment are both buried expenses and are not taken into consideration when making decisions.
- Sunk costs become important costs and ought to be included in company choices on upcoming events if they can be removed at some point.
- Any sunk costs that have expiration dates should be taken into consideration, for instance, if XYZ Clothing is thinking about closing a production plant. XYZ Clothing weighs the revenue that would be lost if production stopped along with the expenditures that would also be eliminated when deciding whether to close the facility. If the factory lease expires in six months, the lease cost should be included as an item that can be reduced or eliminated since it is no longer a sunk cost. The plant should be shut down if the overall costs exceed the revenue.
Learn more about Sunk cost here:
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Answer:
C. Variable inflation is associated with high transaction costs
Explanation:
Because of uncertainty about future inflation, it may not uncertain relative to its price change. Therefore, option A is not correct.
In order to maximize financial position, inflation harms borrowers and helps lenders, so option B is also incorrect.
Option C is correct because variable inflation is associated with high transaction costs in order to maximize the financial position. For example, if the inflation rate is 5% during first quarter, the price level is not much to disrupt the financial position. Again, in the next quarter, if the inflation rate changes to 4%, the position will be effective more. However, if it increases, it will not affect too much.
