Which of the Following Is Not a Risk Associated with a Global

question 5

Multiple Choice

Which of the following is not a risk associated with a global strategy?

• A) A firm with only one manufacturing location must export its product, sometimes at great distance from the operation.
• B) The geographic concentration of any activity may also tend to isolate that activity from the targeted markets.
• C) Concentrating an activity in a single location makes the rest of the firm dependent on that location.
• D) The pressures for local adaptation may elevate the cost structure of the firm.

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Definitions:

Draft

Any instrument (such as a check) drawn on a drawee (such as a bank) that orders the drawee to pay a certain sum of money, usually to a third party (the payee), on demand or at a definite future time.

Drawee

The party that is ordered to pay a draft or check. With a check, a financial institution is always the drawee.

Payee

The individual or entity to whom a payment is to be made or has been made, typically in the context of financial transactions.

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.