Preston Electronics Is an MNE with Facilities Located in Taiwan

question 65

Multiple Choice

Preston Electronics is an MNE with facilities located in Taiwan, Singapore, and Germany.Preston gives its local operations the authority to adapt value activities to prevailing local economic, political, legal, and cultural conditions.Preston is most likely using a(n) ________ strategy.

• A)global
• B)localization
• C)international
• D)continental

---

Definitions:

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it runs out, taking into account lead times.

Lead Time

The total time taken from the initiation of a process or order until its completion or delivery.

Fixed-Period Inventory System

An inventory control system where orders are made at fixed intervals, but the order quantity varies based on demand.

Safety Stock

Additional inventory held to guard against stockouts, ensuring that a sufficient quantity of goods is available to meet demand fluctuations.