A ________ Strategy Typically Increases the Cost Structure for International

question 61

Multiple Choice

A ________ strategy typically increases the cost structure for international companies and forces them to charge higher prices to recover such costs.

• A) retrenchment
• B) global
• C) multidomestic
• D) blue ocean

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Definitions:

Actuarial Assumptions

The hypotheses about demographic, financial, and other variables that actuaries use to calculate the liabilities and expenses of insurance and pension plans.

GAAP Standards

Generally Accepted Accounting Principles; a set of rules and standards used for financial reporting and accounting in the United States.

Pension Asset

Refers to the resources set aside by a company in a pension fund to meet future pension liabilities to its employees.

Projected Benefit Obligation

A measurement of the present value of future pension benefits earned to date as estimated by actuaries, used in accounting for pension plans.