What Is a Global Firm

question 21

Multiple Choice

What is a global firm?

• A) A firm that operates in one country and exports its goods and services to foreign countries.
• B) A firm that operates in more than one country and has a sales and marketing staff in those countries.
• C) A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors.
• D) A firm that sells its products and services across the world but restricts manufacturing to the home country.
• E) A firm that operates in more than one country but restricts the sale of its products to the home country.

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Definitions:

Agency Costs

Costs that arise from conflicts of interest between principals (owners) and agents (managers), including monitoring and incentive expenses.

Background Checks

The process of verifying the personal, financial, and criminal history of an individual, commonly undertaken by employers.

Time Clocks

Devices used to track the hours worked by employees, often by punching a card or logging in digitally.

Incentivize Employees

Offering rewards or benefits to motivate workers and enhance their performance.