27/ Logitech had modest which became its business operating center because: inni

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27/ Logitech had modest which became its business operating center because: innings in Apples, Switzerland and soon expanded to Fremont, CA Apples a/ Fremont is a low cost area to operate from b/ Fremont is close to some of Log e/ the lease cost of its facilities in itech's main clients, and can draw from a large pool of experts. d/ none of the above. Fremont was so low it was too good to miss. 28/ When "fronting" a loan the parent company benefits because: a/ payback is assured by the international bank that "fronts" for the loan. bit circumvents host country restrictions on the remittance of funds c/ it provides an international tax shelter for the subsidiary d/ all of the above. 29/ Th e intended changes of trade policy of Pres Trump with Mexico under NAFTA is causing the following concerns in the USA: a/ US farmers have expressed concerns about Pres. Trumps trade agenda and its focus on manufacturing b/ Since NAFT A started, US farm exports to Mexico have increased from $4.2billion in '94 to g billion in '16. That may be in jeopardy as Mexico is looking at diversifying its sources. c Possible punitive action by Mexico using tariffs on US agricultural exports, as in '99 with the trucking dispute, are real and very effective. d/ all of the above 30/ Under WTO rules a country correctly labeled as a "currency manipulator" can be subject to punitive tariffs and other measures to correct trade imbalances, this is a real possibility betweern China and its trading partners (such as the USA), therefore: a/ China is dramatically reducing exports. b/ Instead of exporting China is focused on domestic consumption to strengthen its economy. c/ Both the People's Bank of China (central bank) and President Xi Jinping accelerated a shift in y from cratering above all else". d/all of the above tions (20, True is A on the Scantron form, False is B): 31/ The efficiency frontier curve has a convex shape because of diminishing returns. T/F Diminishing returns imply that when a firm already has signif Il amount requires significant additional cost. 32/"Learning effects" refer to systematic reductions in production costs that have been observed to occur over the life of a product. T/F 33/The complexity and global spread of many multinationals might make it particularly difficult for them to change their strategy and architecture to match new organizational realities. TE

Explanation / Answer

Q31) True.The efficient frontier is curved because there is a diminishing marginal return to risk.

Q32) Flase. The learning effect is the process by which education increases productivity and results in higher wages.

Q33) True.Companies usually have to modify their products and packaging to suit the local culture, preferences and language of the new market. Travel expenses are sure to increase for the administrative staff, as they will now be expected to travel all over the world to oversee their business outlets in other countries.

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