The Logic of the Synergy Manager Is That

question 7

Multiple Choice

The logic of the synergy manager is that:

• A) There is little value creation at SBU level.
• B) The parent acts as an agent for financial markets.
• C) The parent can employ its own competences to add value to the businesses.
• D) Value can be enhanced across business units.

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Definitions:

Heckscher-Ohlin Theorem

An economic theory stating that countries will export goods that use their abundant factors of production and import goods that use their scarce factors of production.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time period.

Subsidies

Subsidies are financial grants or support extended by governments to firms, individuals, or institutions to encourage the production or consumption of certain goods or services, or to support industries.

Domestic Firms

Refers to companies that operate within the country where they are based and conduct their business activities in the local market.