McDonald's Introduction of a Greater Number of Local Products on Its

question 15

Multiple Choice

McDonald's introduction of a greater number of local products on its menus,then transferring these items across national borders points to:

• A)The tendency for global products to lose their appeal
• B)The versatility of the McDonald's business system
• C)The potential for localized adaptation within the multinational enterprise to be a source of innovation and strategic renewal
• D)Growing competition in the fast food industry as the McDonald's system is increasingly imitated by local rivals.

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Definitions:

Small Business Owner's Product

A product or service that is offered by an entrepreneur owning and running a small-scale business.

Breakeven Point

The level of production or number of sales at which costs equal revenues, resulting in neither profit nor loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Luxury Goods

Products or services that are not essential but are considered desirable and are associated with high quality and high price.