The Appropriateness of the Strategy That a Firm Chooses to Use

question 30

Multiple Choice

The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _____ and _____.

• A) quality improvement; product standardization
• B) customer surplus; quality improvements
• C) customer surplus; product standardization
• D) cost reductions; local responsiveness
• E) product standardization; cost reductions

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Definitions:

Inventories

The stock of goods or materials that a company holds for the ultimate goal of resale or production.

Investment

The purchase of new plants, new equipment, new buildings, and new residences, plus net additions to inventories.

Nominal GDP

The total market value of all goods and services produced in a country in a given period, measured using current prices without adjusting for inflation.

Current-Year Prices

Prices of goods and services measured during the same year they are produced, not adjusted for inflation; also referred to as "nominal prices."