There Are Vast Differences in Local Market Needs in the Consumer

question 39

Multiple Choice

There are vast differences in local market needs in the consumer soft drink business around the world. TwinFold Media, a Canadian multinational advertising agency, specializes in the soft drink industry and uses a geocentric staffing approach. What advantage would the company gain by using this approach?

• A) It tends to reduce cultural myopia and enhance local responsiveness.
• B) It is inexpensive to implement.
• C) It reduces the costs of value creation.
• D) It allows all key management positions of a firm and its subsidiaries to be filled by parent-country nationals.
• E) It requires minimal documentation for hiring foreign nationals.

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Definitions:

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid out to shareholders as dividends.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Market Price

The ongoing cost for buying or selling an asset or service within a market setting.

Acid-Test Ratio

A stringent indicator of a company's liquidity, calculated by dividing liquid assets excluding inventories by current liabilities.