Which of the Following Statements Is True About Organizing the Multinational

question 27

Multiple Choice

Which of the following statements is true about organizing the multinational company?

• A) Globalization, as a competitive strategy, is inherently less vulnerable to risk than a multidomestic or domestic strategy.
• B) In determining whether or not to globalize a particular business, managers should look first at their competitors instead of their own industry.
• C) Market, economic, environmental, and competitive factors do not influence the potential gains to be realized by following a global strategy.
• D) Whether a company should undertake a multidomestic or global approach to organizing its international operations will largely depend on the nature of the company and its products.

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Definitions:

Asset Account

An account on a company's balance sheet that represents tangible or intangible items of value owned by the company.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is positioned on the left in an accounting entry.

Credit

An accounting entry that increases a liability or equity account or decreases an asset or expense account, reflecting the opposite of a debit.

Basic Accounting Equation

Assets = Liabilities + Stockholders’ Equity.