All of the Following Are Risks Associated with a Global

question 8

Multiple Choice

All of the following are risks associated with a global strategy, except

• A) a firm with only one manufacturing location must export its product-some of which may be a great distance from the operation.
• B) the geographic concentration of any activity may also tend to isolate that activity from the targeted markets.
• C) concentrating an activity in a single location makes the rest of the firm dependent on that location.
• D) the pressures for local adaptation may elevate the firm's cost structure.

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Definitions:

Breach of Contract

The omission of performing any clause of an agreement, whether written or orally communicated, without a defensible legal excuse.

Payments

The act of transferring money or other valuable consideration from one party to another as a fulfillment of a legal obligation or for the acquisition of goods or services.

Contract

A legally binding agreement between two or more parties, creating obligations that are enforceable by law.

Infant

A legal term referring to a person who is not yet of the age of majority, typically under 18 years old, and therefore is considered unable to enter into contracts.