The Following Are Common Problems That Multinational Companies (MNCs)face in Attempting

question 42

Multiple Choice

The following are common problems that multinational companies (MNCs) face in attempting to control their overseas operations except:

• A) the objectives of the foreign operation and the corporate objectives are similar.
• B) the objectives of joint-venture partners and corporate management conflict.
• C) amount of experience and competence in planning are widely diverse among foreign chief executive officers (CEOs).
• D) basic philosophic conflicts exist about objectives and policies of foreign operations, largely because of cultural differences between home- and host-country managers.

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Definitions:

Resource Consumption

The amount of resources used by a company or process, which could include materials, energy, or labor.

Idle Capacity

Unused production capability in a manufacturing process or facility.

Plantwide Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, used to allocate indirect costs to products based on a common base such as labor hours or machine hours.

Activity-Based Costing

A cost accounting method that assigns costs to products or services based on the activities that go into producing them.