Among organizational characteristics, the level of global integration is likely to be high if the firm
A) attempts to use transfer pricing, tax minimization, or transaction cost savings.
B) targets local market expansion.
C) building presence in highly uncertain markets.
D) aims to seize market opportunities.

Question

Quizplus · Accepted Answer

High level of global integration is typically associated with the use of various mechanisms like transfer pricing, tax minimization, or transaction cost savings which help firms leverage their resources across borders and operate efficiently in different markets. These mechanisms enable firms to coordinate and integrate their operations on a global scale. Therefore, option A is the best choice. Options B, C, and D may not necessarily result in a high level of global integration. Targeting local market expansion, building presence in highly uncertain markets, or aiming to seize market opportunities can be part of a firm's global strategy, but these actions alone do not necessarily require a high level of global integration.

Among Organizational Characteristics, the Level of Global Integration Is Likely