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Afina-wow [57]
3 years ago
8

Raymond Vernon states that the classic rationale for international diversification is to: Group of answer choices preemptively d

ominate world markets before foreign companies can establish dominance. avoid domestic governmental regulation. extend the product's life cycle. discover product innovations.
Business
1 answer:
wariber [46]3 years ago
4 0

Answer:

extend the product's life cycle

Explanation:

International diversification refers to a situation wherein a company extends the sale of it's products or services beyond the domestic national boundaries, dealing in different i.e diverse goods and services which are somewhat unrelated to one another.

It refers to investing in more than one nation so as to spread and reduce the risk with respect to variability and fluctuation in return.

The higher the fluctuation in return, the higher is the risk, the more stable the return, lower the risk.

Diversification refers to investing in different assets and securities or nations, whose performance is least correlated to one another so that if one economy yields losses, profits and gains from another nation or economy would offset such losses and thus reduce the risks to which the total investment is subject to.

As per Raymond Vernon, the rationale behind international diversification is to extend the product's life cycle as international diversification increases the product's life cycle and i.e the period between a product's development and it's decline and withdrawal from a market.

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Jessica spends all her income on two goods, A and B. The price of A is $5, and the price of B is $7. At the current consumption
masha68 [24]

Answer:

Jessica should consume more of good A.

Explanation:

Jessica spends all her income on two goods, A and B.

The price of A is $5, and the price of B is $7.

At the current consumption bundle, the marginal utility of A is 10, and the marginal utility of B is 21.

The total utility is maximized when the ratio of marginal utility and price of the goods consumed is equal for all the goods in the bundle.

The ratio for Good A

= \frac{10}{5}

= 2

The ratio for good B

= \frac{21}{7}

= 3

Since the ratio is higher for good B, the consumer should shift from consumption of good B to good A until the ratio is equal for both the goods.

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3 years ago
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Answer:

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Explanation:

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3 0
3 years ago
Read 2 more answers
how does the cost of financial capital influence innovative research and development activities in a competitive market?
Marysya12 [62]

Because R&D initiatives are expected to yield a greater rate of return, businesses seek a huge quantity at a cheap cost.

<h3>What are the necessary finances?</h3>

To calculate your financial requirement, divide your anticipated family commitment by two and the cost of attendance (COA) for even a school (EFC). Although COA varies from university to university, your EFC does not change no matter which school you attend.

<h3>Which four necessities in terms of financial are there?</h3>

For the majority of Americans, job is the first step toward financial stability. People need revenue to meet expenditures and for budgetary considerations. They also must invest for the future, save cash for a rainy morning, borrow money to acquire assets, plus insure yourself against shocks.

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3 0
1 year ago
Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) 2021 2022 2
SVETLANKA909090 [29]

Answer: Unearned subscription revenue.

Explanation:

Tax is made on a cash basis which means that a transaction is eligible for taxation once cash has been paid for it. Businesses however have to use the Accrual basis which only record transactions in the period that they have been incurred.

In this scenario, there is more subscription payment in cash than the company recognized which means that the company has not yet delivered the service they were paid for and so could not recognize the subscriptions. They will however be taxed on those amounts because the cash has come in.

The account giving this temporary difference is therefore the Unearned Subscription Revenue account.

8 0
3 years ago
A risky fund has an expected return of 17% and standard deviation of 25%. The risk-free rate is 9%. The expected return of the o
Marrrta [24]

Answer:

the Sharpe ratio of the optimal complete portfolio is 0.32

Explanation:

The computation of the sharpe ratio is shown below:

= (Return of portfolio - risk free asset) ÷ Standard deviation

= (17% - 9%) ÷ 25%

= 8% ÷ 25%

= 0.32

Hence, the Sharpe ratio of the optimal complete portfolio is 0.32

We simply applied the above formula

4 0
3 years ago
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