What is the difference between direct costs and opportunity costs?
What will be an ideal response?
Direct costs are those the firm incurs in entering a new foreign market and include costs associated with setting up a business operation. Opportunity costs are the costs of missing other opportunities by virtue of entering one market rather than another.
You might also like to view...
Use the information in Scenario 4.7. What is the pre-tax cash flow (net present value) for alternative #2 compared to the base case of doing nothing for the next five years?
A) negative pre-tax cash flow B) more than $0 but less than $100,000 C) more than $100,000 but less than $200,000 D) more than $200,000
When working with people from other cultures, which of the following will help ensure proper etiquette in social settings?
A) Don't shake hands unless invited to B) Introduce yourself with a humorous comment C) Explain your role in the organization D) Learn about the customs of the other cultures E) Invite the group to dinner and cocktails to learn more about each other