Question

The United Nations has calculated that the time involved in preparing documentation, along with the costs of common errors in paperwork, often amounts to ______ percent of the final value of goods exported.

A. less than 1

B. 33

C. 10

D. over 25

Which two strategies are desirable if cost pressures are high?

A.

Global and transnational

B.

Global and international

C.

International and multidomestic

D.

Multidomestic and transnational

Answer 1

1) Answer : C.   10%

This is also called statistical discrepancy or value lost in transactions . Time has its own value , so time lost in documentation is loss of economic value that could have been used in other productive works . Errors is paperworks are human errors which causes loss of value .

2) Firms competing in global market face cost pressures . When major competitors have cost advantage then this pressure is felt . Transnational Strategy , Global Standardization Strategy are the two strategies desirable when cost pressures are intense . Both focuses on economies of scale and learning effects .

Answer : A ) Global and transnational