What Is the Main Reason That Globalization 2

question 22

Multiple Choice

What is the main reason that Globalization 2.0 practices have faded over time?

• A) Substantial FDI for the duplication of home-based business functions induced a waste of resources.
• B) Decoupled strategic business units induced a higher cost of coordination.
• C) Distrusting relationships with suppliers induced an increased cost of procurements.
• D) A lack of understanding of local cultures caused a higher cost in distribution and sales.

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Definitions:

Cash Sales

Transactions where customers pay for goods or services in cash at the point of sale, resulting in immediate revenue.

Credit Sales

Sales made on credit, allowing customers to purchase goods or services and pay for them at a later date.

Loss from Sale

An unfavorable difference between the selling price of an asset and its book value, leading to a financial loss for the entity.

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.