Which of the Following Is Not a Risk Associated with a Global

question 5

Multiple Choice

Which of the following is not a risk associated with a global strategy?

• A) A firm with only one manufacturing location must export its product, sometimes at great distance from the operation.
• B) The geographic concentration of any activity may also tend to isolate that activity from the targeted markets.
• C) Concentrating an activity in a single location makes the rest of the firm dependent on that location.
• D) The pressures for local adaptation may elevate the cost structure of the firm.

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Definitions:

GDP Accounts

GDP accounts provide a comprehensive overview of a country's economic activity by measuring the total market value of all goods and services produced in a specific period.

Production

The process of creating goods or services by combining various inputs like labor, materials, and technology.

Income

Money received, especially on a regular basis, for work or through investments.

GDP

Gross Domestic Product is an indicator of a country's economic health, signifying the aggregate value of all goods and services made within a certain timeframe.