_____ arise when the business system in a foreign country is so different from that in a firm's home market that the enterprise has to devote considerable effort,time,and expense to learning the rules of the game.
A) Sunk costs
B) Variable costs
C) Pioneering costs
D) Opportunity costs
E) Standard costs

Question

Quizplus · Accepted Answer

Pioneering costs arise when a company needs to invest considerable effort, time, and expense in learning the rules of the game in a foreign country with a different business system. These costs are often associated with the establishment of a new business or industry in the foreign market. Sunk costs refer to costs that have already been incurred and cannot be recovered, variable costs are costs that vary with a change in production or sales volume, opportunity costs are the value of the best alternative that must be forgone in order to pursue a certain action, and standard costs are estimated costs that are used for planning and control purposes.

_____ Arise When the Business System in a Foreign Country