Why Can a Company More Easily Pursue a Global Strategy

question 31

Multiple Choice

Why can a company more easily pursue a global strategy when it owns 100 percent of foreign operations?

• A) The company is not likely to face overcapacity issues.
• B) The company limits foreign exchange rates fluctuations.
• C) The company avoids communication misunderstandings.
• D) The company can sub-optimize results in one country in order to optimize results globally.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity.

Financial Data

Numeric information representing the financial performance, position, and cash flows of a company.

Current Ratio

A metric that evaluates how well a business can handle its short-term financial commitments due within a year.

Financial Data

Quantitative information about a company's financial position, performance, and cash flow, which is used for analysis and decision-making.