Question

According to the book, economic analyses become more complex when a firm enters overseas markets because, unlike the situation for a company operating domestically

A. the uncontrollable economic variables must be forecast.
B. management must operate in two new environments, foreign and international.
C. economists know less about foreign exchange rates.
D. analysts must now forecast the values for both socioeconomic and economic variables.
E. both the uncontrollable economic variables must be forecast and economists know less about foreign exchange rates.

Answer 1

Answer:

Option B Management must operate in two new environments, foreign and international.

Explanation:

Now the management has to consider the strategy to counter foreign competitors and international competitors in that market. The company will try to reduce its costs by increasing the efficiency of the procedures to safeguard the market share in international trade. The competitors would definitely react to over price in the foreign and international market.