Companies from the Emerging Markets Are Proving to Be Surprising

question 42

Multiple Choice

Companies from the emerging markets are proving to be surprising challengers to older, larger MNCs.Which of the following would you recommend as an MNC strategic response?

• A)Invest in growing mass markets of developing countries.
• B)Partner with companies from the emerging markets.
• C)Buy out smaller rival firms in the emerging markets.
• D)Consider developing countries as more than just manufacturing sites.
• E)All of the above

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Definitions:

Operating Activities Section

A part of a company's cash flow statement that shows the cash flow from its core business operations.

Direct Method

A method of computing the net cash provided by operating activities in which the income statement is reconstructed on a cash basis from top to bottom.

Indirect Method

A method of computing the net cash provided by operating activities that starts with net income and adjusts it to a cash basis. It is also known as the reconciliation method.

Inventory

Raw materials, work-in-process, and finished goods that a company holds with the intent to sell or use in production.