Which of the Following Statements Is True of a Geographic

question 49

Multiple Choice

Which of the following statements is true of a geographic area structure?

• A) It is typically used when firms initially expand abroad.
• B) It reduces inefficient duplication in multiple countries.
• C) It encourages the fragmentation of the multinational enterprises into fiefdoms.
• D) It assigns global responsibilities to each product division across different countries.

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Definitions:

Laspeyres Price Index

An index used to measure the change in the cost of purchasing a fixed basket of goods and services over time, using the prices from the base period as weights.

Base Year

A specific year against which economic or financial data is compared, often used to calculate indices or real growth rates.

Current Year

The ongoing year according to the Gregorian calendar, continuously updating as time progresses.

Paasche Price Index

A price index that measures the price changes between the current and base period by using the current period quantities as weights.