When Firms Expand into Global Markets,they Are Faced with the Choice

question 60

Multiple Choice

When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to adapt locally,companies should choose a(n) ________ strategy or ________ strategy in order to compete in the global marketplace.

• A) global; transnational
• B) global; multidomestic
• C) international; global
• D) transnational; multidomestic

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Definitions:

Controllable Cost

A cost over which a manager has control.

Actual Cost

The actual expense incurred to acquire an asset or service, including all costs necessary to bring the asset into use or to complete the service.

Responsibility Accounting

A system of accounting that segments financial information by areas of responsibility within an organization, aiding in budgeting and performance evaluation.

Responsibility Reports

Reports designed to evaluate the financial performance of different segments of an organization, focusing on areas under a manager's control.