Which of the Following Is an Effect of Globalisation on Managers

question 91

Multiple Choice

Which of the following is an effect of globalisation on managers and organisations?

• A)Expanded competition
• B)Increased labour cost
• C)Greater emphasis on business boundaries
• D)Expanded reliance on home country markets
• E)Increased cross-nation trade barriers

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Definitions:

Optimal Capital Structure

The best combination of debt and equity financing that maximizes a company's value while minimizing its cost of capital.

Debt Levels

The total amount of borrowing, represented as a ratio of debt to equity or a total dollar amount.

Excessive Risk

Engaging in financial activities that have a high chance of resulting in significant loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a firm can increase profits by increasing sales.