When Multinationals Have Subsidiaries in Geographically Distant Locations, Costs and Risks

question 193

True/False

When multinationals have subsidiaries in geographically distant locations, costs and risks increase due to information asymmetry.

---

Definitions:

Units Produced

A measure of production output, quantifying the number of complete units manufactured within a specific period.

Commissions Paid

Expenses a company incurs from paying a fee to agents or salespersons based on the sales volume or contracts they secure.

Cost of Production Report

A summary documenting the costs associated with producing goods, usually within a manufacturing environment.

Direct Labor

The labor cost of workers directly involved in the production of goods or services, considered a variable cost.