A Company That Controls Finances in the Home Country and Decentralizes

question 83

Multiple Choice

A company that controls finances in the home country and decentralizes production,sales,and marketing operations to other countries is using a ________ strategy.

• A)domestic exporter
• B)franchising
• C)transnational
• D)multinational
• E)conglomerate

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Definitions:

Short Run

The period of time for which two conditions hold: The firm is operating under a fixed scale (fixed factor) of production, and firms can neither enter nor exit an industry.

Total Variable Costs

The sum of all costs that vary with the level of output or production.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and labor expenses.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.