Which of the Following Is a Disadvantage of the Home

question 7

Multiple Choice

Which of the following is a disadvantage of the home replication strategy? 

• A) It lacks local responsiveness. 
• B) It is organizationally complex and difficult to implement. 
• C) It focuses too much on the foreign country. 
• D) It has higher costs due to duplication of efforts in multiple countries.

Comprehend the objective and implications of transfer pricing to encourage divisional cooperation and increase overall company income.

Recognize the impact of the balanced scorecard in evaluating both financial and nonfinancial performance metrics.

Understand the negotiation process for transfer pricing and its benefits, especially when there is unused capacity.

Grasp how service department charges and other expenses are allocated and impact departmental and overall company performance.

---

Definitions:

Opinion Leaders

Individuals who exert an unequal amount of influence on the decisions of others because they are considered knowledgeable about particular products.

Individualism Or Collectivism

A cultural element that describes whether a society values personal goals and independence (individualism) or prioritizes group goals and cohesion (collectivism).

Perception Process

Involves the organization, identification, and interpretation of sensory information to understand the environment and events.

Internal or External Stimulus

Any event or situation that triggers a response or reaction from an individual or organization, which can originate from within (internal) or outside (external) the entity.