Foreign Subsidiaries Play a Major Role in Shaping the Future

question 65

Multiple Choice

Foreign subsidiaries play a major role in shaping the future direction of a company pursuing a(n)

• A) transnational strategy.
• B) international strategy.
• C) localization strategy.
• D) joint venture.
• E) global standardization strategy.

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Definitions:

Economies Of Scale

Cost advantages obtained due to the increased level of production, which causes the cost per unit of output to decrease.

Game Theory

A theoretical framework for conceiving social situations among competing players and predicting their optimal decisions.

Strategic Situations

Scenarios where the outcomes depend on the actions of two or more decision-makers, each considering the others' likely responses.

Normative Economics

The part of economics involving value judgments about what the economy should be like; focused on which economic goals and policies should be implemented; policy economics.