Which of the Following Is an Advantage of the International

question 24

Multiple Choice

Which of the following is an advantage of the international model?

• A)It facilitates the transfer of skills from the parent company to the subsidiaries.
• B)It provides maximum latitude to research and development functions.
• C)It provides the opportunity to achieve a low-cost position via scale economies.
• D)It requires a minimum amount of effort and coordination by the parent company.
• E)It transfers ultimate control of the company to the subsidiaries.

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Definitions:

Efficiency Rate

The ratio of the actual output produced to the expected standard output, utilized in assessing operational efficiency.

Manufacturing Capacity

The maximum amount of products a facility can produce over a given period under normal working conditions.

Quality Cost Report

A document outlining the expenses related to maintaining product quality, which encompasses prevention, appraisal, and failure costs.

Prevention Costs

Money spent on measures aimed at preventing defects in products or services prior to their occurrence.