A Geographic Structure Is Most Appropriate for Which of the Following

question 16

Multiple Choice

A geographic structure is most appropriate for which of the following companies?

• A)An oil producer that sells gas, a commodity, in five different regions
• B)A telecommunications company that makes technologically complex equipment
• C)A retailer who specializes in clothing and operates in five different regions of the United States
• D)A large manufacturer that wants to produce automobiles in Mexico and computers in Southeast Asia

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Definitions:

Interest-earning Assets

Financial assets that generate income through the payment of interest, such as savings accounts, bonds, and certificates of deposit.

Real GDP

The total value of all goods and services produced in a country in a year, adjusted for inflation.

Open-market Purchases

Transactions where a central bank buys government securities in the open market to increase the money supply.

Federal Funds Market

A market in which banks lend funds to one another for short-term periods, usually overnight, with interest rates determined by the supply and demand for these loans.