Which of the Following Is an Implication of the Global

question 29

Multiple Choice

Which of the following is an implication of the global changes in political and economic systems for international business?

• A)The ideological conflict between collectivism and individualism is less in evidence today.
• B)Adoption of Western ideology is declining worldwide.
• C)The global tide has been running in favor of command economies and totalitarian dictatorships.
• D)Free markets and democracy are being replaced by mixed economies and communist governments.
• E)Liberalization and privatization of state-owned enterprises has been losing popularity.

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Definitions:

Direct Material

These are the raw materials and components that are consumed directly in the manufacture of a product.

Variable Overhead

Costs that vary in total in direct proportion to changes in activity level or volume, such as utility costs or raw materials that fluctuate with production levels.

Factory Depreciation

The decrease in value of manufacturing equipment and facilities over time due to wear and tear or obsolescence.

Return on Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiency of multiple investments.