One of the Potential Problems for an MNE That Practices

question 87

Multiple Choice

One of the potential problems for an MNE that practices too much polycentrism is ________.

• A) demanding that local communication methods be replaced with modern technology
• B) underestimating the complexity of introducing new management practices
• C) losing innovative capabilities to less-risky host-country practices
• D) relying too much on home-country directions and policies

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Definitions:

Perpetual Inventory System

An inventory accounting system that records purchases and sales of merchandise immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are determined at the end of an accounting period, not after each sale or purchase.

Freight Charges

Costs associated with transporting goods from one location to another, paid by the shipper or the receiver, depending on the terms of sale.

Perpetual Inventory System

An inventory management system where updates are made continuously to the inventory records to reflect sales, purchases, and returns in real-time.