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:

Firms

Businesses or organizations engaged in commercial, industrial, or professional activities.

Software

Software refers to a collection of data or computer instructions that tell the computer how to work. This is in contrast to physical hardware, from which the system is built and actually performs the work.

Instructions

Directions or commands that are given to a computer or program to perform specific operations or tasks.

Hardware

The physical components or parts of a computer system, such as the CPU, RAM, hard drives, and peripherals.