Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
1) firms pursuing the global strategy and the transnational strategy disperse each value
creation activity to its optimal location in the world.
2) systematic risk refers to movements in a stock portfolio's value that are attributable
to macroeconomic forces affecting all firms in an economy, rather than factors specific
to an individual firm.
3) when a firm creates a global web of value creation activities, the company disperses
different stages of the value chain to those locations in the world where perceived value
is maximized or where the costs of value creation are minimized.
4) a capital market brings together those who want to invest money and those who want
to borrow money.
5) the international fisher effect has proven to have substantial power at predicting
short-run changes in spot exchange rates.
6) accounting information is the means by which firms communicate their financial
position to the providers of capital.
7) two types of competitive pressure that affect the ability of mnes to compete in the
global marketplace are pressure for cost reductions and pressure for local
responsiveness.
