All of the Following Are Limitations of a Global Strategy

question 28

Multiple Choice

All of the following are limitations of a global strategy, except

• A) limited ability to adapt to local markets.
• B) the ability to locate activities in optimal locations.
• C) the concentration of activities may increase dependence on a single facility.
• D) single locations may lead to higher tariffs and transportation costs.

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Definitions:

Nominal Rate

This is an interest rate that has not been adjusted for inflation, representing the face value of financial products.

Effective Rate

The actual interest rate on an investment or loan, taking into account the compounding of interest at specified intervals over time.

Compounded Continuously

A method of calculating interest where the amount earned is constantly reinvested, leading to exponential growth over time.

Effective Annual Rate

The effective annual rate is the real return on an investment, taking into account the effect of compounding interest over a year.