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Question
Why is countertrade considered inefficient?
Answer
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Related questions
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Because many regional trading groups prohibit companies from producing in more than one member country, companies need to understand how to evaluate international geographic alternatives.
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Which of the following is true about projected demographic changes up to the year 2050 that could affect future production and sales locations?
A) The share of the working population should rise in developed countries and fall in developing countries.
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U.S.-based MNEs are not permitted to set budgets and monitor results using the same exchange rate.
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Describe total quality management.
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Duty-free zones are special locations for storing domestic and imported inventory in order to avoid paying duties until the inventory is sold.
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Sourcing in the home country enables a company to avoid numerous problems associated with global sourcing.
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What is the Industry Organization (IO) paradigm? Discuss the underlying assumptions of this model.
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Micro-multinationals are firms that globalize immediately and enter countries with numerous customers, productive workers, and attractive industries.
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A company that develops different capabilities and contributions from different countries and shares them in integrated worldwide operations is using a transnational strategy.
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Pressures for global integration include economic integration, convergent consumer preferences, and political demands imposed by host countries.
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Using a concentrated configuration, an MNE performs value activities in different countries.
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When different companies produce the same commodity, their costs are essentially the same.
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Markets are not always perfectly competitive and some firms consistently outperform industry averages. This suggests that firm performance is also influenced by the presence of bright, motivated managers and their keen sense of innovative products or processes.
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The term ________ refers to a global company that thrives on seeking unique ideas and insights from locations around the world and then leveraging that knowledge in international markets.
A) multidomestic
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B) the industry's product is a commodity
C) entry barriers are low for new firms
D) suppliers have little bargaining power