Which of the Following Is True of a Localization Strategy

question 44

Multiple Choice

Which of the following is true of a localization strategy?

• A)It allows a firm to capture the cost reductions of mass-producing a standardized product.
• B)It reduces duplication of functions.
• C)It involves longer production runs.
• D)It makes sense if the value added by customization supports higher pricing.
• E)It substantially reduces local demand.

---

Definitions:

Forward Contract

A financial contract obligating the buyer to purchase, and the seller to sell a specific asset at a predetermined future date and price.

Spot Rates

The current market price at which a particular security can be bought or sold for immediate delivery.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Hedge Transaction

A financial transaction designed to reduce the risk of adverse price movements in an asset.