A "Think Local,act Local" Multidomestic Type of Strategy

question 38

Multiple Choice

A "think local,act local" multidomestic type of strategy

• A) is very risky, given fluctuating exchange rates and the propensity of foreign governments to impose tariffs on imported goods.
• B) is usually defeated by a "think global, act global" type of strategy.
• C) becomes more appealing the bigger the country-to-country differences in buyer tastes, cultural traditions, and market conditions.
• D) is generally an inferior strategy when one or more foreign competitors is pursuing a global low-cost strategy.
• E) can defeat a global strategy if the "think local, act local" multicountry strategist concentrates its efforts exclusively in those foreign markets which have superior resources.

Calculate and interpret fixed and variable manufacturing overhead variances.

Identify and analyze the effects of direct labor cost variances.

Comprehend the financial implications of raw material price and quantity variances.

Process standard cost variances into cost of goods sold adjustments.

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Definitions:

Compression

The act of pressing together; in geology, it refers to the stress applied to materials causing a decrease in volume or shortening.

Thrust Faulting

A geological process where one rock layer is pushed up over another, often leading to mountain building.

Overriding Plate

The tectonic plate that sits above another plate at a convergent boundary, often responsible for mountain building and volcanic activity.

Ocean-Continent Convergent Boundary

A plate-tectonic boundary where an oceanic plate converges with a continental plate, generally expressed by subduction of the oceanic plate beneath the continent.