What is the single most important innovation to the globalization of markets and production?()
A. advances in transportation technology
B. the development of the microprocessor
C. advances in communication
D. the Internet
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A form of government in which one person or political party exercises complete control over all spheres of human life and prohibits opposing political parties is a representative democracy.( )
How do most firms begin their international expansion?()
A. with exporting
B. with a wholly owned subsidiary
C. with licensing or franchising
D. with a joint venture
What is the main disadvantage of wholly owned subsidiaries?()
A. They make it difficult to realize location and experience curve economies
B. The firm bears the full cost and risk of setting up overseas operations
C. They may inhibit the firm's ability to take profits out of one country to support competitive attacks in another
D. High transport costs and tariffs can make it uneconomical
Firms should produce in multiple locations when ____.
A. fixed costs are low
B. fixed costs are substantial
C. the minimum efficient scale of production is high
D. appropriate flexible manufacturing technologies are available
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