One Strategic Reason That Multinational Corporations Move to Developing Countries

question 58

Multiple Choice

One strategic reason that multinational corporations move to developing countries is that __________.

• A) there are fewer regulations, which translates into more profits
• B) the unemployment rate is much higher in developing countries
• C) more regulations make factories safer for workers
• D) there are fewer job seekers in the United States.
• Answer A

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Definitions:

Market Economy

An economic system in which supply and demand from consumers primarily determine what, how, and for whom goods and services are produced.

Consumers' Desire

The inclination or preference of consumers towards certain products or services, which drives demand and influences market trends.

Product X

A placeholder name for any given product or service under consideration in an economic or marketing context.

Competitive Industry

A market scenario where there are many sellers, leading to competitive prices and innovations.