A Global Strategy

question 32

Multiple Choice

A global strategy

• A) involves the development of global markets, market by market.
• B) involves the integration of activities worldwide.
• C) is not able to capitalize on firm-specific advantages as easily as does the multidomestic strategy.
• D) generally results in each subsidiary establishing its own accounting system but sending the information back to the home office for global consolidation.

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Definitions:

Borrowing Money

The act of obtaining funds from another party, typically a financial institution, with the promise to return the principal amount along with interest.

Issuing Stock

The process by which a company releases its shares to the public or existing shareholders to raise capital.

Purchase Assets

The act of acquiring ownership or a controlling interest in physical or intangible items that have value, for operational or investment purposes.

Real Assets

Physical or tangible assets such as real estate, commodities, and natural resources.