Of the following,which is one of the central principles recommended in this chapter for a firm organizing itself for international business?
A)Organize value-adding activities along lines of comparative advantage.
B)Establish multiple offices for international systems and a global CIO position.
C)Disperse production and marketing to regional centers and establish a single center for world headquarters and strategic management.
D)Develop and operate systems units at the international level first.
E)Centralize production,but decentralize marketing and sales to be close to the customer.

Question

Quizplus · Accepted Answer

The central principle recommended in this chapter for a firm organizing itself for international business is to organize value-adding activities along lines of comparative advantage. This means that a company should allocate its resources and activities to the regions or countries where it can efficiently produce goods and services at a lower cost or with a better quality than its competitors. By doing so, a firm can maximize its competitiveness and profit in the global marketplace.

Of the Following,which Is One of the Central Principles Recommended