Which of the Following Statements Is True About International Strategy

question 31

Multiple Choice

Which of the following statements is true about international strategy?

• A) It is usually adopted by companies that face intense cost pressures due to competition.
• B) It makes most sense when the pressures for local responsiveness are very intense.
• C) It often involves the head office retaining tight control over marketing and product strategy.
• D) It often involves decentralizing product development functions such as R&D to different subsidiaries.
• E) It involves extensive scope for localization and product differentiation.

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Definitions:

Self-Control Problems

Refers to the difficulty people have in sticking with earlier plans and avoiding suboptimal decisions when finally confronted with a particular decision-making situation. A manifestation of time inconsistency and potentially avoidable by using precommitments.

Time Inconsistency

The tendency of people to change their plans about future actions due to a preference for immediate gratification over future reward.

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Behavioral Economics

An area within economics analyzing how various psychological, emotional, cognitive, cultural, and social elements affect the decision-making processes in economics of both individuals and organizations.