A Firm That Is Facing Both Strong Cost Pressures and Strong

question 21

Multiple Choice

A firm that is facing both strong cost pressures and strong pressures for local responsiveness should follow a(n) _____ strategy.

• A) localization
• B) global standardization
• C) international
• D) transnational

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Definitions:

Net Capital Outflow

In economic terms, it's the net flow of capital, both monetary and physical, out of a country, taking into account investments abroad minus foreign investments domestically.

National Saving

The total of private and public savings in a country, often considered as the sum of household, business, and government savings.

Domestic Investment

This refers to the total amount of money invested within a country's own borders by both private and public sectors.

Foreign-Currency Exchange

The act of exchanging one country's currency for another's, influencing international trade and economic relations.