Disadvantages of a Global Strategy Include

question 30

Multiple Choice

Disadvantages of a global strategy include

• A) lack of local responsiveness.
• B) inability to engage in global strategic coordination.
• C) failure to exploit experience curve effects.
• D) lack of control over quality.
• E) inability to realize location economies.

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Definitions:

Foreign Bond

A bond denominated in the currency of the country in which it is sold, but issued by a foreign borrower.

Domestic Bonds

Domestic bonds are debt securities issued within a country by domestic entities, including the government, cities, or corporations, and are denominated in the country's own currency.

Foreign Firm

A company that is based in one country while conducting business operations in one or more other countries.

Free Trade

An economic policy that allows imports and exports among countries with minimal or no tariffs, quotas, or other restrictions.