With a Modular Structure,a Firm _____

question 59

Multiple Choice

With a modular structure,a firm _____.An example of the modular structure is the massive 787 Dreamliner project,in which Boeing contracted with many suppliers,each responsible for one component or assembly,which were then integrated to make the aircraft.

• A)is a company outside a company that is created specifically to respond to an exceptional market opportunity
• B)assembles portions of product provided by outside contractors
• C)is an organization whose members are geographically apart,usually working via e-mail
• D)has a central core of key functions and outsources production
• E)consists of a company with many divisions

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Definitions:

Net Capital Outflow

The difference between domestic savings and domestic investment, representing the amount of capital leaving a country to invest abroad minus the capital inflowing from abroad for investment domestically.

Interest Rate

The percentage of a loan charged to the borrower as interest, usually represented as an annual percentage rate of the remaining loan balance.

Market For Foreign-Currency Exchange

A marketplace where participants can trade currencies from different countries, essentially a repeated framework for the process in

Real Exchange Rate

The price of one country's currency in terms of another currency, adjusted for inflation, which reflects the purchasing power between the two countries.