An Investor Has $1000 to Invest and Is Considering the Four

question 116

Multiple Choice

An investor has $1000 to invest and is considering the four alternatives shown below.How well each investment does depends on the state of the economy.The payoff table is shown below. If the investor chose the money market and the economy went into recession,what is the value of the opportunity loss?

• A)-50
• B)0
• C)250
• D)550

---

Definitions:

Transnational Strategy

A business strategy that involves operating in several countries while optimizing flexibility and local responsiveness.

Knowledge Flow

The process through which information and expertise are disseminated within and between organizations, teams, or individuals.

Locally Responsive

A strategy where a company adapts its products, services, and business practices to meet the needs and preferences of local markets.

Global Strategy

A business strategy that involves operating in multiple countries and coordinating marketing, operations, and finance activities to achieve global objectives.