Global Marketing Standardization

question 105

Multiple Choice

Global marketing standardization:

• A) is becoming less popular with the large multinationals
• B) encourages product,packaging,and advertising variations for each nation or local market
• C) actually raises production costs
• D) presumes markets throughout the world are becoming more alike
• E) is more popular with consumer products than with industrial goods

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Definitions:

CM Ratio

The CM Ratio, or Contribution Margin Ratio, is a financial metric that shows the proportion of sales revenue that exceeds variable costs, indicating the amount available to cover fixed costs and generate profit.

Fixed Expenses

Costs that remain constant for a set period and do not vary with changes in activity level, production volume, or sales, such as lease payments and utility bills. This is a rephrased definition of Fixed Costs.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Contribution Margin

The difference between sales revenue and variable costs, serving as a measure to assess the profitability of products or services.