Which of the Following Is True of the International Strategies

question 68

Multiple Choice

Which of the following is true of the international strategies used by multinationals?

• A) A firm using a multidomestic strategy sacrifices responsiveness.
• B) A firm using a global strategy sacrifices efficiency.
• C) A global strategy places high emphasis on being responsive to local requirements within each of its markets.
• D) A multidomestic strategy tries to balance the desire for efficiency with the need to adjust to local preferences within various countries.
• E) A global strategy stresses the need to gain economies of scale by offering essentially the same products or services in each market.

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid for, representing future obligations that a company recognizes on its financial statements.

Capital Lease

A lease classified as a purchase by the lessee for accounting purposes, where the lessee obtains significant ownership rights over the asset.

Operating Lease

is a rental agreement allowing a lessee to use an asset temporarily without ownership, typically with terms significantly shorter than the asset's life.

Operating Cash Flows

The cash generated from the normal operating activities of a business, reflecting its ability to generate positive cash flow to maintain and grow its operations.