Agrestal Cosmetics, Inc. is a leading U.S. manufacturer of natural, herb-based cosmetic products. It started out purely as a domestic company but in 1983 established operations in India primarily to gain access to that country's abundant supply of hibiscus, a plant that provided important raw materials to the company's products. In 2009, Agrestal did business in 29 countries around the world. It has factories in Malaysia and Taiwan to use the low labor cost in those countries in making its labor-intensive products. In the late 1990s, it had to close it operations in a foreign country when, due to a change in the country's leadership, all foreign companies had to cease doing business there. During the Brazilian financial crisis, Agrestal adopted the practice of using revenues generated in Brazil to buy orange concentrate locally and sell that concentrate in the United States. Agrestal's corporate finance department aggressively uses hedging in all the countries where it operates. In a few select countries, Agrestal licenses its brand names and know-how to local licensees. Currently, Agrestal is organized whereby all strategic and operational decisions are made at its Princeton, New Jersey headquarters.
-From its organization structure, it appears that Agrestal is attempting to maximize ________ in its operations.
A) local responsiveness
B) strategic coordination
C) operational coordination
D) international integration

Question

Quizplus · Accepted Answer

Agrestal Cosmetics, Inc. has established operations in multiple countries, has factories in countries with low labor costs, uses revenues generated in Brazil to buy local products and sell them in the United States, and aggressively uses hedging in all countries where it operates. These actions suggest that the company is attempting to maximize international integration in its operations. The fact that all strategic and operational decisions are made at its headquarters in Princeton, New Jersey further supports this choice.