McDonald's Used Expertise Developed in Brazil's Inflationary Environment to Deal

question 10

Multiple Choice

McDonald's used expertise developed in Brazil's inflationary environment to deal with the economic environment in Russia when it exhibited similar inflationary tendencies. Which of McDonald's strategies would this experience have most strongly influenced?

• A)pricing
• B)promotion
• C)distribution
• D)product adaptation

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Definitions:

Moral Hazard

A situation in which one party engages in risky behavior or lacks incentive to guard against risk because another party bears the consequences.

Moral Hazard

The situation in which one party can take risks because they know that they will not have to bear the full consequences of their actions.

Life Insurance

A contract between an insurer and a policyholder, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.