In going multinational, the CEO is excited about the opportunity for PyraTex to create decent jobs that will promote the local economy in Vietnam
The CFO is skeptical, arguing that the best way to increase profits from a foreign production plant is to pay workers the lowest wages possible. Which of the following statements would the CEO and CFO disagree on?
A) A multinational company should expect to make a profit on its foreign endeavors.
B) Increased international trade enhances the interdependence of countries on each other.
C) When U.S. companies do better internationally, it gives the U.S. government more leverage with other countries.
D) Paying workers a living wage can boost the local economy and create more potential customers for the company's products.
E) Operating multinationally can give a company the opportunity for quick growth.
Answer: D
Explanation: D) The CEO would agree that this would be a worthwhile goal whereas the CFO would say it's a distraction from maximizing profitability. Choice A is something both could agree upon—the CEO does not say that the new endeavor is worthwhile even if it loses money. Choices B, C, and E describe potential effects of international business on international relations and internal operations, which the CEO and CFO may or may not agree with.
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