A Manufacturing Company Realises That Its Components and Products Could

question 34

Multiple Choice

A manufacturing company realises that its components and products could be made more cheaply in a range of countries; the products need to be carefully tailored to suite customers in a range of countries. What international strategy should it adopt?

• A) Multidomestic
• B) Simple export
• C) Global
• D) Complex export

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Definitions:

Market Equilibrium

The state in which the supply and demand for a good or service are balanced, leading to a stable price.

Consumer Surplus

The variance between the total price consumers are ready and able to fork over for a good or service and the sum they ultimately pay.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually do pay.