The Common Characteristic of Multinationals That Are Organized by Function

question 56

Multiple Choice

The common characteristic of multinationals that are organized by function at the upper level is a narrow:

• A) and highly integrated product mix.
• B) and highly integrated customer list.
• C) variation of prices in the product mix.
• D) research and development effort.
• E) none of the above

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Definitions:

Economic Efficiency

An economic state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Deadweight Losses

Losses in total surplus that occur when a market is not in competitive equilibrium, often due to taxes or subsidies.

Economic Efficiency

A situation where all resources are allocated in a way that maximizes the total benefit to society or minimizes waste.

External Cost

A cost that a transaction or activity imposes on a party who is not involved in the transaction, often not reflected in market prices.