Scenario A

question 110

Multiple Choice

Scenario A. Suppose you are a consultant for three companies with international operations. Each of them has selected a different global strategy. Alpha Company uses their established skills in producing widgets which they will sell in foreign markets. Beta Company produces locally-targeted wines for which they have built specialized plants in each local region. Gamma Company has a single worldwide corporate headquarters from which they centrally manage the entire company's operations. Finally, Delta company is located in Wazomia where wages are quite low, and produces large pieces of widgets that are fairly easy to manufacture, requiring little employee skill level. These pieces are then sent to its locations abroad to be finished by a more skilled workforce taking into account the customs and benefits desired by each of those particular populations.
-Which global strategy is Delta Company using?

• A)global
• B)international
• C)transnational
• D)multinational
• E)domestic

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Definitions:

Boundary Values

Specific values at the edge of an input range that are tested in software testing to ensure that the system correctly handles them.

Exercise Price

In options trading, it is the price at which the holder can buy (call option) or sell (put option) the underlying security.

Black-Scholes Model

A mathematical model used to price European-style options, evaluating their worth based on stock volatility, risk-free rate, and other factors.

Option Theta

A measure of the rate of decline in the value of an options contract due to the passage of time.