When a Firm Utilizes Its Entire Worldwide System of Production

question 14

Multiple Choice

When a firm utilizes its entire worldwide system of production and market position against competition,it is using a

• A)multidomestic strategy.
• B)transnational strategy.
• C)international strategy.
• D)global strategy.

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Definitions:

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a negative balance of trade.

U.S. Dollar Price

The cost of an item or service expressed in terms of the United States currency.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, enabling more efficient international trade.

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors, using the same amount of resources.