What Gives a Firm Tight Control for Coordinating a Globally

question 71

Multiple Choice

What gives a firm tight control for coordinating a globally dispersed value chain?

• A)signing joint-venture agreements
• B)installing manufacturing units in locations with optimal factor conditions
• C)setting up wholly owned marketing subsidiaries
• D)establishing a greenfield venture
• E)using foreign marketing agents

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Definitions:

Security Investments

Investments in tradable financial assets such as stocks, bonds, or other securities aiming for capital appreciation or income generation.

Fair Value

An estimation of the price at which an asset would change hands between willing parties, neither under compulsion to buy nor sell, and both having reasonable knowledge of relevant facts.

Unrealized Loss-Income

Financial losses or gains that have occurred on paper due to changes in asset values but are not realized until the asset is sold.

Unrealized Gain or Loss-Equity

Increases or decreases in the value of held investments that have not yet been sold, affecting the equity portion of the balance sheet.