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:

Annual Fixed Costs

Costs that do not vary with the level of production or sales volume within a certain range and time period, such as rent, salaries, and insurance.

Turnover

A financial metric indicating the rate at which a company's inventory or assets are replaced through sales in a given period.

Minimum Required Rate

This is the lowest rate of return or interest rate that investors are willing to accept for investment in a project, often influenced by risk and market conditions.

Net Operating Income

The profit realized from a business's operational activities, after deducting operating expenses but before interest and taxes.