When Starbuck Operates in Other Countries It Customizes the Snacks

question 19

Multiple Choice

When Starbuck operates in other countries it customizes the snacks to local tastes.This is a(n) ____ challenge for international managers.

• A)technological
• B)cultural
• C)political
• D)economic
• E)legal

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Definitions:

Merger

The combination of two or more companies into a single entity, often to enhance competitiveness and efficiency.

Learning Curves

A phenomenon in which experience leads to learning meaning that current production lowers future costs.

Economies Of Scope

Cost advantages that enterprises obtain by producing a wide variety of products, rather than specializing in the production of a single product or a very few products.

Economies Of Scale

A situation where the cost per unit of output decreases as the scale of production increases.