Which of the Following Is an Example of an Integrative

question 20

Multiple Choice

Which of the following is an example of an integrative technique for responding to political risk?

• A) Diversifying production of a product among a number of countries
• B) Creating joint ventures and hiring local people to manage and run operations
• C) Raising capital from local banks and the host government as well as outside sources
• D) Limiting the responsibility of local personnel and hiring only those who are vital to the operation

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Definitions:

Total Cost

The complete cost of producing or acquiring goods or services, including variable and fixed costs.

Direct Materials Price Variances

The difference between the actual cost of direct materials and the expected (or standard) cost, used to assess changes in material costs over time.

Quantity Variances

The difference between the expected quantity of materials, labor, or overhead and what was actually used.

Direct Materials Cost

The cost of raw materials directly used in the manufacturing of a product.