The Basic Strategy Options for Local Companies in Competing Against

question 53

Multiple Choice

The basic strategy options for local companies in competing against global challengers include

• A)best-cost provider and focused low-cost provider and low-cost leadership strategies.
• B)export strategies, licensing strategies, and cross-border transfer strategies.
• C)utilizing understanding of local customer needs and preferences to create customized products or services, developing business models to exploit shortcoming in local infrastructure, and using acquisitions and rapid growth to defend against expansion-minded multinationals.
• D)franchising strategies, multidomestic strategies keyed to product superiority, global low-cost leadership strategies, and cross-border coordination strategies.
• E)focused differentiation and broad differentiation strategies.

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Definitions:

Premium on Bonds Payable

The excess amount over the face value that investors pay when they purchase a bond, representing an additional cost to the issuer.

Semiannual Interest

Interest payments made twice a year on a loan or investment.

Face Values

The nominal value or original amount stated on a financial instrument, such as a bond or a stock certificate.

Journal Entries

The basic means of recording financial transactions in the accounting system, consisting of debits and credits to various accounts.