Which of the Following Is True of Theodore Levitt's Arguments

question 51

Multiple Choice

Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?

• A) Modern transportation is facilitating a convergence of tastes and preferences among consumers in advanced countries of the world.
• B) Academics feel that Levitt understates his case concerning global markets and the fall of multinational corporations.
• C) Globalization, in the sense used by Levitt, is the rule rather in consumer goods markets and industrial markets.
• D) Levitt's arguments hold true with respect to consumer goods markets but not for basic industrial products.
• E) As observed by Levitt, in global markets, firms do not tailor their products to suit different countries.

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Definitions:

Variable Overhead

Costs that vary in total in direct proportion to changes in activity level or volume, such as utility costs or raw materials that fluctuate with production levels.

Factory Depreciation

The decrease in value of manufacturing equipment and facilities over time due to wear and tear or obsolescence.

Return on Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiency of multiple investments.

Controllable Margin

Controllable Margin refers to the portion of profit or income that can be directly influenced by managerial decisions, excluding fixed costs and uncontrollable factors.