When Competing with the New Champions from Emerging Markets, MNCs

question 39

Multiple Choice

When competing with the new champions from emerging markets, MNCs:

• A)should give up-the new champions have cheaper labor and the latest technology
• B)can ignore the new champions-they are only effective in emerging markets
• C)should focus on the high end of the market and leave the rest to the local companies
• D)sometimes buy out local rivals and use them to challenge the new champion in the home market
• E)none of the above

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Definitions:

Current Dividends

The amount of money paid to shareholders from a company's current earnings.

Cumulative Voting

A voting system used by corporations allowing shareholders to allocate their entire vote in any proportion to one or more candidates for the board of directors.

EPS Growth Rate

A measure of the annualized rate of increase in earnings per share of a company over time.