Which Strategy for MNEs Entering Foreign Markets Is Best Described

question 14

Multiple Choice

Which strategy for MNEs entering foreign markets is best described as the development and distribution of standardized products worldwide to reap maximum benefits from low cost advantages?

• A) Asset allocation
• B) Localization strategy
• C) Home replication strategy
• D) Global standardization

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Definitions:

Efficient Market Outcomes

Refers to a situation in markets where all available information is fully reflected in prices, ensuring that transactions do not systematically advantage any party.

Risk-free Ventures

Investments that are assumed to have no risk of financial loss.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Decision-making Processes

The steps involved in choosing among alternatives to address a problem or capitalize on an opportunity.