Which of the Following Factors Is Not a Mandate Toward

question 27

Multiple Choice

Which of the following factors is not a mandate toward globalization for many U.S.businesses?

• A) Improvements in transportation and shipping have lowered shipping costs worldwide.
• B) Political clout of consumers has tended to erode barriers designed to protect inefficient manufacturing in other countries.
• C) With development costs rising,firms must increase unit sales outside the United States to remain competitive.
• D) Firms must be able to produce where costs are lowest.
• E) All of the above are factors.

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Definitions:

Pricing

The method of determining the value at which a product or service will be sold to consumers.

Transfer Pricing

Pertains to the pricing of goods, services, and intellectual property when these are exchanged between companies under a common control, affecting tax liabilities and financial results.

Division Charges

Fees or costs allocated to separate departments or divisions within a company for internal accounting or budgeting purposes.

Premium Pricing

A strategy where goods or services are priced higher than the market average to create a perceived value of higher quality or exclusivity.