A Global Strategy

question 57

Multiple Choice

A global strategy:

• A) is easy to manage because of common operating decisions across borders.
• B) achieves efficient operations without sharing resources across country boundaries.
• C) increases risk because decision making is centralized at the home office.
• D) lacks responsiveness to local markets.

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Definitions:

Tariff

A tax imposed on imported goods, often used to protect domestic industries from foreign competition and to raise government revenue.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public expenses.

Import Quota

A government-imposed limit on the quantity of a specific good that can be imported into a country.

Honda Automobiles

A reference to the range of vehicles manufactured by the Honda Motor Company, a multinational automotive manufacturer.