The International Environment and Global Strategy of the MNE Are

question 43

Multiple Choice

The international environment and global strategy of the MNE are very influential in the budgeting process in that

• A) the value of budgets is equally accepted worldwide due to the increased flow of information about evaluation techniques.
• B) transfer prices can affect profitability and, therefore, performance evaluation.
• C) managers in countries with wide variations in inflation rates usually can predict those rate variations for budgeting purposes.
• D) all of the above.

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Definitions:

Formal Teams

Groups within an organization that are officially recognized and organized with specific roles and tasks to achieve collective goals.

Grouping Work Positions

The process of organizing jobs and responsibilities within a company into specific categories or departments to streamline operations.

Functional Structure

An organizational design that groups employees by their similar specializations, roles, or tasks.

Top Management Group

Consists of the highest-level executives in an organization who are responsible for strategic decisions and overall direction.