International Businesses Generally Base Their Structures on Certain Factors

question 28

Multiple Choice

International businesses generally base their structures on certain factors.To achieve horizontal differentiation, _____.​

• A)a hierarchy of authority must be created that clarifies the responsibilities of both domestic and foreign managers​
• B)​the global structure must allow decisions to be made in the most appropriate area of the organization
• C)​controls must be in place that reflect the strategies and goals of the parent firm
• D)​foreign and domestic operations should be grouped in such a way that the company effectively serves the needs of all customers

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Definitions:

Interest Rate Parity

A financial theory stating that the difference in interest rates between two countries is equal to the difference between the forward and spot exchange rates of their currencies.

Nominal Risk-Free

The rate of return on an investment with no risk of financial loss, not adjusted for inflation.

Export Development Canada

A Canadian government agency that provides financing, insurance, and bonding services to Canadian exporters and investors.

Canadian Exports

Goods or services sold by Canada to other countries.