Scenario - Boseman Clothier,Inc

question 30

Multiple Choice

Scenario - Boseman Clothier,Inc.
Boseman Clothier,Inc.has been in operation for over 75 years.It is based in South Carolina,USA and is a well-recognized name in the industry.It produces custom fitted men's suits that are in high demand throughout the world.The average cost of one of its suits is in excess of five thousand U.S.dollars.Boseman proudly states it has more customer orders than its one store can fill within the next six months.With growing demand from overseas,the company has recently decided to open operations in four foreign markets next year.
Boseman realizes the potential of this move will generate increased revenues for the company.One of the options it is contemplating is exploring forming an international joint venture.Boseman is also entertaining the thought of opening operations differently in each of the four new foreign markets.The company feels the use of different strategies may increase its odds of generating profits in each different market.
-Boseman is also considering making the entry into the international market by engaging in foreign direct investments in the nations.Which one of the following is not a true statement regarding foreign direct investment from the host country's perspective?

• A) Significant financial inflows always result from engaging in foreign direct investment.
• B) Foreign direct investment can create new jobs and can generate tax revenues for governments
• C) A concern of the local governments in host countries is the lack of corporate social responsibility
• D) There is the potential for exploitation of human labor within certain countries
• E) These investments may take the form of plants,buildings,or inventories

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Definitions:

Mixing Department

refers to a section within a manufacturing facility where ingredients or components are combined to produce a product, vital in industries such as food processing and chemicals.

Direct Labor Hours

The total time workers spend creating a product or service, directly associated with the production process.

Plantwide Overhead Rate

A single overhead rate calculated by dividing all factory overhead costs by a base, applied across all production activities within a plant.

Machine Hours

A measure of the amount of time a machine is used in the production process, often used as a basis for allocating overhead costs.