Which of the Following Is Not a Way in Which

question 47

Multiple Choice

Which of the following is not a way in which country risk analysis can be used?

• A) to monitor countries where an MNC is currently doing business
• B) as a screening device to avoid conducting business in countries with excessive risk
• C) to revise an MNC's financing decisions
• D) to determine the degree to which the MNC is exposed to exchange rate movements

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Definitions:

Low-Cost Strategy

Low-cost strategy is a competitive approach where a company aims to become the lowest cost producer in its industry, offering products or services at a price lower than its competitors to attract cost-sensitive customers.

Differentiation Strategy

A business strategy where a company seeks to distinguish its products or services from competitors, typically through quality, design, or unique features.

Profitable Growth

An increase in revenue that leads to enhanced profitability, reflecting both expansion and efficient operations.

Transnational Strategy

A business strategy that involves operating in various countries around the world, recognizing both global efficiency and local responsiveness.