Two Factors Tend to Determine Whether an Industry Will Be

question 18

Multiple Choice

Two factors tend to determine whether an industry will be primarily multi-domestic or primarily global.One of the factors is pressure for coordination within the MNCs operating in that industry.The other factor is

• A) the pressure for local responsiveness on the part of individual country markets.
• B) the power of the local country governments to restrict MNC actions.
• C) the need for brand management in the various MNCs operating within that industry.
• D) the importance of differentiating with integrating mechanisms in regional cooperatives.
• E) the likelihood of terrorist activity impacting that industry.

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Definitions:

Hamburger Standard

A method for comparing the purchasing power between different currencies by measuring the cost of a McDonald's Big Mac in various countries.

Overvalued Currency

A situation where a currency's value is higher than what is considered to be its fair market value, often due to government intervention.

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold, allowing it to be exchanged for a set amount of gold.

Balance Of Trade

The difference in value between a country's exports and imports over a certain period.