Which of the following is true about international divisions?
A) The international division centralizes in several entities, without separate incorporation, and accepts all of the responsibility for international activities.
B) To avoid situations in which the international division is at a disadvantage in competing for production and related services, corporations need to coordinate between domestic and international operations.
C) The international division best serves firms with several products that vary significantly in terms of their environmental sensitivity, and when international sales and profits are quite significant compared with those of the domestic divisions.
D) The international division concentrates solely on manufacturing functions in order to take advantage of the economies of scale.

Question

Quizplus · Accepted Answer

Coordination between domestic and international operations is necessary to avoid disadvantage in competition for production and related services. Option A is incorrect because international divisions typically have separate incorporation. Option C is incorrect as the international division can serve firms with a variety of product types and international vs. domestic sales do not necessarily need to be significantly different. Option D is incorrect as the international division is not limited to manufacturing functions.

Which of the Following Is True About International Divisions