The Essential Difference Between a "Think-Global, Act-Global" and a "Think-Global

question 85

Multiple Choice

The essential difference between a "think-global, act-global" and a "think-global, act-local" approach to strategy-making is that

• A)a "think-global, act-global" approach entails extensive strategy coordination across countries and a "think-global, act-local" approach entails little or no strategy coordination across countries.
• B)the former aims at implementing the same business model worldwide, whereas the latter aims at implementing customized business models to better match local market circumstances.
• C)the "think-global, act-global" approach gives local managers more latitude to make minor strategy variations where necessary to better satisfy local buyers and to better match local market conditions.
• D)a "think-global, act-global" approach involves selling a mostly standardized product worldwide, whereas a "think-global, act-global" approach entails selling products that are highly differentiated from country to country.
• E)a "think-global, act-global" approach involves selling under a single brand name worldwide, whereas a "think-global, act-local" approach entails utilizing multiple brands (typically one for each different country or group of neighboring countries).

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Definitions:

T-bill Rate

The yield or interest rate paid by the U.S. government on its Treasury bills, which are short-term debt obligations.

Stock Price

The price at which a particular share of stock is bought or sold in the market.

Risk-free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a set price before the contract expires.