Which of the Following Statements Is True About International Strategy

question 31

Multiple Choice

Which of the following statements is true about international strategy?

• A) It is usually adopted by companies that face intense cost pressures due to competition.
• B) It makes most sense when the pressures for local responsiveness are very intense.
• C) It often involves the head office retaining tight control over marketing and product strategy.
• D) It often involves decentralizing product development functions such as R&D to different subsidiaries.
• E) It involves extensive scope for localization and product differentiation.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs.

Break-Even Point

The financial point at which total costs and total revenue are equal, resulting in no net loss or gain.

Safety Margin

The amount by which a product's selling price exceeds its production cost, providing a buffer for profitability.

Cost Volume Profit Analysis

Cost Volume Profit Analysis is an accounting technique used to determine the effects of changes in costs and volume on a company's profits.