Regarding the Way International Companies Are Structured and Integrated

question 62

Multiple Choice

Regarding the way international companies are structured and integrated:

• A) no single structure is best for all companies and contexts.
• B) managers must consider the nature of their company's international operating environment and their competitors' strategies when deciding when and how to modify the company's organizational structure.
• C) gains from increased specialization will be nullified by increased costs of coordination, requiring managers to choose between the two.
• D) all of the above
• E) two of A, B, and C.

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Definitions:

Installation Costs

Expenses associated with setting up equipment or assets so that they are ready to be used in operations.

Transportation Costs

Expenses incurred by a company to move its goods or services from one location to another.

Equipment Cost

The total expense incurred from acquiring equipment including purchase price, transportation, installation, and any other costs to make the equipment operational.

Double-Declining-Balance Method

An accelerated depreciation technique that depreciates assets faster than traditional straight-line depreciation.