A _____ Occurs When a Company's Management Decides to Add

question 34

Multiple Choice

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry.

• A)product line reeling
• B)product line extension
• C)product line classification
• D)product line contraction

---

Definitions:

Multidomestic Strategy

A strategy used by companies that involves customizing products and marketing strategies to specific national conditions to gain local market share.

Market Diversity

The variety and heterogeneity of products, services, consumers, and entities within a market, enhancing competition and innovation.

Polycentric View

Refers to a perspective in international business where a company adapts its strategies and operations to the local conditions of the countries it operates in, often giving significant autonomy to each local branch.

Divestiture

The process of selling off subsidiary business interests or investments by a company to refocus its operations or to raise capital.