When a Global Firm Turns to Its Subsidiaries in Less

question 59

Multiple Choice

When a global firm turns to its subsidiaries in less developed markets for new product ideas, such as when Coca-Cola developed Minute Maid Pulpy out of its Shanghai research center and then moved the product into other markets around the world, the firm is engaged in

• A)a consortia.
• B)reverse innovation.
• C)competitive engineering.
• D)pioneering.
• E)beta testing.

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Definitions:

Break-Even Model

A financial calculation to determine the point at which revenue equals expenses, resulting in neither profit nor loss.

Variable Cost

Expenses that change in proportion to the activity of a business.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Raw Material Costs

The expense associated with the basic materials required in the production of goods.