Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former communist nations of East Europe and central Asia?
A. The high levels of economic development in these countries
B. The signs of growing unrest and totalitarian tendencies seen in these countries
C. A strong commitment to market-based economic systems seen in these countries
D. The collapse of communism in these countries
E. Low returns involved in doing business in these countries
B
Disturbing signs of growing unrest and totalitarian tendencies continue to be seen in several Eastern European and Central Asian states. Thus, the risks involved in doing business in such countries are high, but so may be the returns.
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An advantage of issuing bonds over common stock is that bondholders do not have voting rights.
a. true b. false
Dumping occurs when ________
A) a company entering a foreign market charges either less than its costs or less than it charges at home B) a company entering a foreign market charges more than the price in its home market C) a company entering a foreign market charges prices that are lower than those charged by its competitors in this market D) a company sets its price equal to its average cost of production E) a company exports its products to a foreign country to increase its revenue in spite of excess demand in the home country