Which of the following stages in the development of multinationals is characterized by multinational firms setting up foreign subsidiaries to handle sales in a country?
a. Stage one
b. Stage two
c. Stage three
d. Stage four
ANSWER: b
Multinational corporations often develop their global business in stages. In the first stage, companies operate in one country and sell into others. Stage two is characterized by a multinational company setting up foreign subsidiaries to handle sales in one country.
You might also like to view...
Which of the following questions is best asked of employees during the step “gather a list of ethical behaviors from participants” in the process of making a code of ethics?
a. “Describe a situation when you behaved very ethical toward a customer.” b. “Describe a situation when you observed someone in the organization behave unethically toward a customer.” c. “Describe a situation when you behaved unethically toward a customer.” d. “Tell us what you think constitutes an ethical behavior.”
According to the text, which of the following is one of the objectives given for establishing sales territories?
A. To improve customer relations and satisfaction. B. To attain more efficiency in businesses based on personal friendships. C. To match the wants of the salesperson with the needs of the customers served. D. To facilitate utilization of the undifferentiated selling approach. E. To lower long-term company profits.
Belgium has been noted to have adequate legislation with respect to racial and ethnic discrimination, Yet the UN Committee on the Elimination of Racial Discrimination in its March 2002 meeting expressed concern in regards to Belgium. What was the committee concerned about?
a. Expiring legislation leaving many citizens unprotected from harassment b. Difficult access of ethnic minorities to housing and employment c. The legislation did not cover protections for sexual orientation d. There was weak enforcement of existing legislation
Two mutually exclusive projects each have a cost of $10,000. The total, undiscounted cash flows from Project L are $15,000, while the undiscounted cash flows from Project S total $13,000. Their NPV profiles cross at a discount rate of 10 percent. Which of the following statements best describes this situation??
A. ?The NPV and IRR methods will select the same project if the required rate of return is greater than 10 percent; for example, 18 percent. B. ?The NPV and IRR methods will select the same project if the cost of capital is less than 10 percent; for example, 8 percent. C. ?As the NPV profiles cross at a discount rate of 10 percent resulting in conflict, none of these two projects should be selected. D. ?Project L should be selected at any required rate of return, because it has a higher IRR. E. ?Project S should be selected at any required rate of return, because it has a higher IRR.