Answer:
The correct answer is option D.
Explanation:
A purely domestic firm can face competition from an MNC. An MNC has the advantage of more than one sources of inputs and more than one product market. But the domestic firm also possesses an advantage of having a thorough knowledge of the local market as they have operated there unlike MNCs.
The domestic even though operating in the domestic territories may still face foreign exchange risk. This is because their competitors may be operating internationally.
Answer:
d. the country would rank low on the accounting values of conservatism
Explanation:
Gray's accounting framework postulates that the 4 accounting values of professionalism, conservatism, secrecy, and uniformity can be used to predict differences in accounting systems internationally.
Uncertainty avoidance is the degree to which cultures tolerate unpredictability.
Counties with high uncertainty avoidance are more conservative for example Japan.
While countries that have low uncertainty avoidance are less conservative. They are flexible to change and more willing to take risks.
Answer: the ability to produce a good at a lower opportunity cost than other producers
Explanation: In other to clearly understand or grasp the definition or meaning of comparative advantage, the term opportunity cost should be understood. Opportunity cost simply means the benefit which one forfeits or losses when one chooses a certain option over the other. Comparative advantage is possessed by a certain seller or economy who is capable of selling his goods at a lower opportunity cost than its competitors. Thus, the comparative advantages weighs the size or amount of benefit forfeited or lost by sellers as a result of selling at a lower price. Thus the lower the opportunity cost, the better the comparative advantage.
Answer:
c. The stock's beta will be greater than one.
Explanation:
In order to understand the right answer here, we need to understand what Beta is and what does it represent.
Well, Beta tells about the responsiveness of any stock in comparison with the stock market index. For example, if the index move 100 points positive and the stock price moves $120 positive, this means that the stock is very responsive and has a high beta of more than 1. For stocks that are less response to stock market, their beta is less than 1, while for stocks who move the exact same direction as per the stock market, their beta is said to be equal to 1.
Here, in this question, since the stock return is more variable than the market return, it clearly tells that the Beta of that stock will be greater than one.
Hope this helps, Good Luck.
PLANT LAYOUT is the arrangement of machinery, equipment and personnel within a production facility.
It refers to planning and configuring a manufacturing plant for production of goods. It is the most effective form of physical arrangement in any facility such as an industry or a company. A well designed plant layout plays an important role in the growth of that industry.
