The Approach a Company Takes When It Bases Foreign Operations

question 35

Multiple Choice

The approach a company takes when it bases foreign operations on an informed knowledge of its organizational culture along with home- and host-country needs, capabilities, and constraints is called ________.

• A)polycentrism
• B)ethnocentrism
• C)neocentrism
• D)geocentrism

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Definitions:

Bid Price

The highest price that a buyer is willing to pay for a security or commodity.

Value-Weighted Index

An index in which each component is included in proportion to its market value, making larger companies account for a bigger portion of the index.

Divisor

A mathematical component used in indices to adjust the index value, catering for changes in stock splits or similar adjustments.

Stocks

Shares of ownership in a company, entitling the shareholder to a portion of the company's profits and assets.