Which of the Following Statements Is True About an International

question 2

Multiple Choice

Which of the following statements is true about an international division structure of an organization?

• A) It puts a great deal of burden on the CEO for monitoring the operations of a series of overseas subsidiaries as well as domestic operations.
• B) It prevents the company from developing an overall, unified approach to international operations as well as a cadre of internationally experienced managers.
• C) Companies still in the development stages of international business involvement are least likely to adopt an international division structure.
• D) Companies that use an international division structure include those with small international sales, limited geographic diversity, or few executives with international expertise.

---

Definitions:

Floor Price

The minimum price set by regulation, often by the government, below which a commodity cannot legally be sold in the market.

Market Supply

The total amount of a specific good or service that is available to consumers in a market at a given time and price.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.

Consumer Surplus

The difference in the total expected payment consumers are ready to make for a good or service and their actual expenditures.