All of the Following Are Benefits of the Global Product

question 21

Multiple Choice

All of the following are benefits of the global product division structure except:

• A)large degree of flexibility in terms of cross-country resource allocation.
• B)large degree of flexibility in terms of cross-country strategic planning.
• C)scale economics.
• D)facilitates a global focus.
• E)easy communication and coordination among the various product divisions without duplication of effort.

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Definitions:

Transactional Costs

Expenses incurred during the process of buying or selling services or commodities, encompassing costs associated with information, negotiation, and enforcement of contracts.

Financial Outlay

The amount of money spent or invested in a specific endeavor or project.

Life Cycle Costs

The total cost of ownership of a product or system over its entire lifespan, including acquisition, operation, maintenance, and disposal costs.

Customer Relationships

The ongoing interactions and bonds formed between a company and its customers, aiming to enhance satisfaction and loyalty.