If Companies Focus Too Much on Local Adaptation, They Run

question 99

Multiple Choice

If companies focus too much on local adaptation, they run the risk of:

• A) using management procedures poorly suited to particular countries' markets, cultures, and employees.
• B) losing the cost effectiveness and productivity that result from using standardized rules and procedures throughout the world.
• C) losing control over the quality of the product or service sold by the foreign licensee.
• D) failing to benefit from an active global strategy.

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Definitions:

Central-Planning Economy

An economic system where the government or central authority makes all decisions regarding the production and distribution of goods and services.

Product Output Quotas

Predetermined targets for the quantity of products that must be produced within a specific timeframe.

Raw Materials

Basic or unprocessed materials that are used as inputs for production or manufacturing processes to create finished goods.

International Business

The exchange of goods, services, and resources between entities in different countries.