The Global Geographic Division Structure

question 24

Multiple Choice

The global geographic division structure:

• A) is most useful for new product lines.
• B) works well for products with rapidly changing technologies.
• C) works best if there are similar needs for the product across countries.
• D) may cause product planning on a global scale to be challenging.

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell a specific commodity or financial asset at a predetermined price at a specified time in the future.

US Treasury Repo

A form of short-term borrowing for dealers in government securities, using U.S. Treasury securities as collateral.

SONIA

The Sterling Overnight Index Average, an important interest rate benchmark in the UK that represents the average of interest rates banks pay to borrow sterling overnight from other financial institutions.

LIBOR

The London Interbank Offered Rate, a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.