Which of the Following Is NOT an Example of Explicit

question 53

Multiple Choice

Which of the following is NOT an example of explicit costs?

• A) Wages paid to workers.
• B) Personal savings of the owner,invested in the firm.
• C) Salaries paid to management.
• D) Fees paid for maintenance of the firm's Web site.
• E) Office space rent.

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Definitions:

Multidomestic Strategy

A strategy whereby global firms respond to differentiated needs and preferences in each local market in which they operate.

Meganational Strategy

A strategy whereby global firms focus on increasing profitable growth by reaping cost reductions from economies of scale and other advantages of global integration.

Transnational Strategy

A strategy whereby global firms take a hybrid approach that combines the meganational and multidomestic strategies, simultaneously offering the benefits of both global and local advantages.

Location Specificity

The importance and impact of a geographical location on a business's operations, strategy, and success.