Which of the following is generally the most costly information source for companies?

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journal article

The Impact of Costly Information Interpretation on Firm Disclosure Decisions

Journal of Accounting Research

Vol. 29, No. 2 (Autumn, 1991)

, pp. 277-301 (25 pages)

Published By: Wiley

https://doi.org/10.2307/2491050

https://www.jstor.org/stable/2491050

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Journal Information

The Journal of Accounting Research publishes original research using analytical, empirical, experimental, and field study methods in accounting research. The journal had been published since 1963 by the Accounting Research Center (ARC) at the University of Chicago Booth School of Business. Beginning in 2001, the Journal of Accounting Research has been published by the ARC in partnership with Blackwell Publishing. JSTOR provides a digital archive of the print version of Journal of Accounting Research. The electronic version of Journal of Accounting Research is available at http://www.interscience.wiley.com. Authorized users may be able to access the full text articles at this site.

Publisher Information

Wiley is a global provider of content and content-enabled workflow solutions in areas of scientific, technical, medical, and scholarly research; professional development; and education. Our core businesses produce scientific, technical, medical, and scholarly journals, reference works, books, database services, and advertising; professional books, subscription products, certification and training services and online applications; and education content and services including integrated online teaching and learning resources for undergraduate and graduate students and lifelong learners. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of information and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Wiley has published the works of more than 450 Nobel laureates in all categories: Literature, Economics, Physiology or Medicine, Physics, Chemistry, and Peace. Wiley has partnerships with many of the world’s leading societies and publishes over 1,500 peer-reviewed journals and 1,500+ new books annually in print and online, as well as databases, major reference works and laboratory protocols in STMS subjects. With a growing open access offering, Wiley is committed to the widest possible dissemination of and access to the content we publish and supports all sustainable models of access. Our online platform, Wiley Online Library (wileyonlinelibrary.com) is one of the world’s most extensive multidisciplinary collections of online resources, covering life, health, social and physical sciences, and humanities.

International managers most likely need to understand how to evaluate international geographic alternatives because ________________________

the commitment of resources to one locale may require forgoing projects in other locales 

A company's overall geographic strategy should be flexible enough to ______________________.

respond to new opportunities and withdrew from less profitable ones 

Elison Enterprises is planning international geographic expansion. A manager at Elison has been given the task of scanning for locations primarily to _________________________.

reduce the number of options available to a manageable number of further detailed analysis

Opal Computers is considering international production expansion. After scanning to decide on a few countries to consider more closely, Opal managers will most likely need to ________________________.

travel to the locations to analyze and collect specific data 

Escalation of commitment is best described as the ____________________________.

increased likelihood of investing in a country because of having spent considerable time and money in examining it 

Sales expansion is probably the most important variable in determining international location decisions. This statement is most likely based on the assumption that _____________________.

increased sales will lead to more profits

Dawson Manufacturing produces and sells DVD players and is planning to expand sales internationally. Dawson has narrowed down the list of potential countries to India and Guatemala. A Dawson manager has the task of obtaining data regarding the number of DVD players sold annually in India and Guatemala. If unable to locate this information, she might most likely estimate the sales potential of these two countries by ?

examining the sales history of flat-screen televisions

Gucci, a maker of luxury fashion and leather goods, plans to expand its sales market. The firm needs to compare countries for the market potential of its products. What would be a good indicator for Gucci to use?

The number of millionaires in each country 

The ability to compare production costs among countries in an effort to determine where to locate production is significantly hampered by ________.

  • Restriction on the international flow of data
  • The way that laws may be enforced
  • Future costs from exchange rate changes

Labor cost advantages gained by moving into a country with low wages may be short-lived because ______________________.

competitors follow leaders into low-wage areas 

In terms of political risk, it is most accurate to state that high risk _____________________.

If avoided, may lead to higher competitive risk

The concept of liquidity preference in international operations refers to what?

a company's willingness to accept a lower rate of return on investments in countries where it can more easily sell them and convert the proceeds at a favorable rate 

Risks to companies from natural disasters and communicable diseases are ___________________________.

Most prevalent in the poorest countries of the world 

U.S. companies generally put earlier and more sales-seeking emphasis on countries __________________________.

where operating conditions seem similar to those at home 

Why did U.S. firms typically place earlier and greater emphasis on expansion into Canada and the U.K. than elsewhere?

Similarities in culture and legal systems 

An example of a first-mover advantage in international operations is ____________________________.

lining up the best suppliers and distributors before competitors enter the market 

Why are there inaccuracies in published governmental data?

  • Limitations of government resources and finances
  • Purposeful publication of misleading information
  • False information provided to data collectors

What is generally the most costly information source for companies?

Grids are a useful method of comparing countries for international business expansion because they ___________________.

set minimum score for processing further 

A manager needs to prepare a grid to compare countries for location of the firm's international operations. It would be most useful for the manager to ______________________.

Use a team made up of people from different functions within the company 

Why use an opportunity-risk matrix for comparing countries?

Narrow alternatives so decision makers can make a detailed analysis of the strongest candidates 

The major use of the matrix as a tool in international location strategy is to _________________________.

indicate the relative placement of countries in terms of attributes 

In a concentration strategy of foreign expansion, a company would go to ________________.

one or a few foreign countries and build a strong involvement there before going to other countries 

In a diversification strategy for international expansion, a company would move _____________________________.

rapidly into many foreign countries and then gradually increase its presence in those countries 

A company should probably use a concentration strategy for international expansion when there are ______________________.

high growth rate and long competitive lead time 

Why are foreign subsidiary managers often reluctant to propose divestments in the countries where they are working?

They are afraid of proposing the elimination of their jobs 

The origin of investment proposals differs from the origin of divestment proposals in that the divestment proposals are more likely to come from ___________________.

Higher up in the organization

A go-no-go decision means _____________________.

An individual project decision is based on weather the project meets threshold criteria 

Assume Company A receives a proposal from Company B to be a joint venture partner abroad. Company A is most likely to make its decision based on __________________.

Carrefour has been more successful in Europe than Walmart, whereas Walmart has been more successful in the United States than Carrefour. What is the most likely reason for these results?

Carrefour expanded internationally by first _____________.

entering adjacent countries 

Why do companies often make location decisions on one international opportunity at a time rather than comparing among more than one?

Why do companies often make location decisions on one international opportunity at a time rather than comparing among more than one? Decisions are made by teams, and it is usually not feasible to give so many people time away from their usual duties to examine multiple proposals.

Which of the following would be considered an international business transaction?

An international business transaction is any type of deal between parties from at least two different countries. These transactions include sales, leases, licenses, and investments; the parties to international business deals include individuals, small and large multinational corporations, and even countries.

In which of the following situations would tax rate differences among countries be most important for deciding where to place an investment quizlet?

Terms in this set (97) In which of the following situations would tax rate differences among countries be most important for deciding where to place an investment? Companies want to serve an entire region within a regional trading bloc.

What is international business and trade?

International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It involves cross-border transactions of goods and services between two or more countries.