In the Context of Choosing an International Strategy, Which of the Following

question 18

Multiple Choice

In the context of choosing an international strategy, which of the following is a difference between a meganational strategy and a transnational strategy?

• A) Unlike a transnational strategy, a meganational strategy allows subsidiaries the discretion and autonomy to adapt and customize locally.
• B) Unlike a meganational strategy, a transnational strategy achieves integration through decisions made mostly by headquarters.
• C) Unlike a meganational strategy, a transnational strategy promotes knowledge flow throughout an organization, regardless of where the ideas originate.
• D) Unlike a transnational strategy, a meganational strategy simultaneously offers the benefits of both global and local advantages.

Comprehend the distinction between the short run and long run in the context of production and firm decisions.

Recognize the importance of explicit and implicit costs in determining profit.

Identify the process of production and the transformation of inputs into outputs.

Discern the role and calculation of normal rate of return in firm economics.

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Definitions:

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods determined mainly by competition in a free market.

Economist Amartya Sen

An Indian economist and philosopher, noted for his contributions to welfare economics, social choice theory, and for his work on famine, human development theory, and the underlying mechanisms of poverty.

Famine

Famine is a severe shortage of food, often due to disaster, war, or economic failure, leading to widespread hunger and malnutrition.

Unequal Access

A situation where different groups or individuals have varying levels of access to resources, information, or opportunities, often leading to disparities and inequality.