Which Global Integration and Coordination Forces Would MNEs,such as Mercedes-Benz,encounter

question 1

Multiple Choice

Which global integration and coordination forces would MNEs,such as Mercedes-Benz,encounter?

• A) Economies of scale, increasingly liberalized trade environments and government demands
• B) Economies of scope, factor costs and increasingly liberalized trade environments
• C) Economies of scale, expanding spiral of globalization and local competitors
• D) Economies of scale, economies of scope and government demands

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, which reflects the value of all goods and services produced by an economy in a given year in real terms.

Keynesian View

A perspective in economics based on the ideas of John Maynard Keynes, suggesting that aggregate demand is the primary driving force in an economy, and advocating for active government intervention to manage economic cycles.

Macroeconomic Equilibrium

A state where aggregate supply equals aggregate demand, leading to a stable economy.

Say's Law

A principle stating that "supply creates its own demand," implying that production of goods and services will in turn generate enough demand for those goods and services.