According to C

question 68

Multiple Choice

According to C.K. Prahalad, the fourth stage of globalization is _____.

• A) when global firms set up operations in other countries
• B) when companies produce goods in one country and export them to other countries
• C) when global businesses establish foreign subsidiaries to handle the exports from their home countries
• D) when stateless corporations locate their core corporate functions and top executives in different countries
• E) when multinational companies headquarter in their home country

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Definitions:

Profit-Volume Ratio

A measure that illustrates how profits will change with a change in volume, showing the relationship between profit and sales levels.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with the level of activity but having a portion that remains constant.

Variable Cost

Costs that vary directly with the level of production or service activity.

Fixed Cost

Expenses that do not change with the level of production or sales over the short term, such as rent, salaries, and insurance.