Implementing the Multidomestic Strategy Requires Decentralization To

question 131

Multiple Choice

Implementing the multidomestic strategy requires decentralization to:

• A) facilitate the tailoring of products to the demand in local markets.
• B) develop economies of scale.
• C) achieve economies of scope.
• D) reduce bureaucracy and speed up decision making.

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Definitions:

Horizontal Equity

A principle of taxation asserting that taxpayers with similar income or ability to pay should be taxed at the same rate.

Vertical Equity

Refers to the principle that individuals who are more capable of paying taxes should contribute more to the tax system, ensuring a fairer distribution based on ability to pay.

Tax System

The structured method by which a government or authority levies taxes on individuals, businesses, and transactions.

U.S. Economy

The economic system of the United States, characterized by a mixture of private and public enterprise and known for being one of the world’s largest and most complex economies.