When Dealing with the Different Internal Rules of the Game

question 21

Multiple Choice

When dealing with the different internal rules of the game the come with being a multinational organization, MNEs need to keep in mind that:

• A)​It is important to stand firm on rules of the game set by MNE corporate headquarters.
• B)​Having a foreigner as CEO is most beneficial for MNEs using a home replication strategy.
• C) ​Some rules facilitate MNE actions, others constrain them.
• D) ​When in Rome, do as the Romans do.

---

Definitions:

Cost Of Goods Sold

Costs directly linked to manufacturing goods that a company sells, comprising expenditures on materials and labor.

Inventory Turnover

A proportion indicating the frequency with which a business has sold its inventory and replenished it within a specific timeframe.

Current Liabilities

Financial obligations of a business that are due and payable within one year, including accounts payable, short-term debt, and other short-term obligations.

Quick Ratio

The quick ratio, or acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.