When a Company Expands Internationally by Maintaining Their Headquarters in Their

question 42

Multiple Choice

When a company expands internationally by maintaining their headquarters in their home country and developing satellite offices elsewhere, it is known as a:

• A)Global company
• B)Multi-Domestic company
• C)Strategic partnership
• D)Direct Foreign Investment

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Definitions:

Direct Materials

Costs of raw materials that are directly used in the production of a product, easily traceable to the product being manufactured.

Direct Labor

The labor costs directly associated with the production of goods or services, including wages of workers directly involved in production.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, including indirect materials, labor, and other expenses.

Insurance

A contractual agreement where one party, the insurer, agrees to compensate another, the insured, for loss on a specified subject by specified perils in return for a premium.