All of the Following Are Limitations of a Global Strategy

question 28

Multiple Choice

All of the following are limitations of a global strategy, except

• A) limited ability to adapt to local markets.
• B) the ability to locate activities in optimal locations.
• C) the concentration of activities may increase dependence on a single facility.
• D) single locations may lead to higher tariffs and transportation costs.

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Definitions:

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating nature of the market economy driven by individuals' pursuit of their own interests.

Price Mechanism

The system by which the prices of goods and services are determined in a free market, based on the principles of supply and demand.

Central Planning Agency

An organization responsible for directing economic activity according to a comprehensive plan, often in a centrally planned economy.

Business Firms

Entities that engage in commercial, industrial, or professional activities with the goal of generating profits for their owners or shareholders.