Which of the Following Is True Regarding a Worldwide Area

question 56

Multiple Choice

Which of the following is true regarding a worldwide area structure?

• A) It tends to be favored by firms with a high degree of diversification.
• B) It inhibits local responsiveness.
• C) It tends to be favored by firms with a domestic structure based on functions.
• D) Decision-making responsibilities are centralized.

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Definitions:

Specialization

The process of focusing on a limited scope of activities, products, or services to gain efficiency or expertise.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others.

Exchange Rate

The value of one country's currency in terms of another currency.

Import

The purchase of goods or services produced in a foreign country for use in the domestic market.