In Competing in Foreign Markets, Companies Find It Advantageous to Concentrate

question 50

Multiple Choice

In competing in foreign markets, companies find it advantageous to concentrate their activities in a limited number of locations in all of these situations, except when

• A)there are significant scale economies in performing an activity.
• B)the costs of manufacturing or other activities are significantly lower in some geographic locations than in others.
• C)when there is a steep learning or experience curve associated with performing an activity in a single location (thus making it economical to serve the whole world market from just one or maybe a few locations).
• D)certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages.
• E)the addition of new production capacity will not adversely impact the supply-demand balance in the local market.

Understand the process and significance of preparing consolidated financial statements.

Analyze and interpret financial statements for decision-making.

Calculate consolidated retained earnings and understand its implications.

Prepare Plax Inc.'s Consolidated Statement of Financial Position.

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Definitions:

Affective Events Theory

A theory that proposes that workplace events cause emotional reactions on the part of employees, which then influence workplace attitudes and behaviors.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.

Organizational Commitment

Organizational commitment is the loyalty of an individual to the organization.

Emotional Commitment

A deep, affective attachment to an organization or cause that surpasses mere loyalty or intellectual agreement.