Globalization of the Location Decision Is the Result of All

question 9

Multiple Choice

Globalization of the location decision is the result of all of the following except

• A) market economics
• B) higher quality of labor overseas
• C) ease of capital flow between countries
• D) high differences in labor costs
• E) more rapid, reliable travel and shipping

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Definitions:

Historical Cost

The original purchase price or cost of acquiring an asset, not adjusted for inflation or market changes.

Equity Method

An accounting technique used to record investments in other companies, recognizing the investor's share of the investee's net income.

Parent Company

A company that holds enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Consolidated Financial Statements

Financial reports that combine the accounts of a parent company and its subsidiaries into a single document.