3. it might be less expensiIve to import the materials rather than locate production close to the source of supply True False 4. To weaken a potential international competitor and protect its domestic market, a company can enter the competitor's home market. True False 5. Spot transaction occurs when an enterprise purchases or sells goods for which payment i made in a foreign currency, or when it borrows or lends foreign currency. True False

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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3. it might be less expensive to import the
materials rather than locate production close
to the source of supply
True
False
4. To weaken a potential international
competitor and protect its domestic market, a
company can enter the competitor's home
market.
True
False
5. Spot transaction occurs when an enterprise
purchases or sells goods for which payment is
made in a foreign currency, or when it
borrows or lends foreign currency.
True
False
14. Additional investment in a foreign country
is sometimes motivated by a need to protect
that market from local competitors.
True
False
16. Additional investment in a foreign country
is sometimes motivated by a need to protect
local market from local competitors
True
False
Transcribed Image Text:3. it might be less expensive to import the materials rather than locate production close to the source of supply True False 4. To weaken a potential international competitor and protect its domestic market, a company can enter the competitor's home market. True False 5. Spot transaction occurs when an enterprise purchases or sells goods for which payment is made in a foreign currency, or when it borrows or lends foreign currency. True False 14. Additional investment in a foreign country is sometimes motivated by a need to protect that market from local competitors. True False 16. Additional investment in a foreign country is sometimes motivated by a need to protect local market from local competitors True False
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