Identify a Factor That Encourages the Use of Centralized Decision

question 1

Multiple Choice

Identify a factor that encourages the use of centralized decision making in subsidiary operations.

• A) Little experience in international business
• B) Moderate to low degree of technology
• C) Small geographic distance between home office and subsidiary
• D) Little importance attached to brand name and patent rights

Analyze the necessity of clear, certain terms in contracts and the role of agreement in contract formation.

Understand the basic concepts of probability and how it applies to investment decisions.

Learn how to calculate expected values and understand their significance in economic decisions.

Understand the concept of variance and standard deviation as measures of risk.

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Definitions:

Proximity To Raw Materials

The strategic advantage gained by being located near the supply of raw materials, reducing transportation costs and time.

Physical Characteristics

The tangible attributes or features of an object, person, or location that can be observed with the senses.

Labor Supply

The total hours that workers or employees are willing to work at a given wage rate, or the availability of workers available to work in an economy.

Flexible Manufacturing

A system that allows for easy adaptation to changes in product design and demand by using versatile equipment and computer systems.