To Exploit Monopolistic Advantages, an MNC Should

question 42

Multiple Choice

To exploit monopolistic advantages, an MNC should:

• A)acquire a competitor that has controlled its local market.
• B)establish a subsidiary or acquire a competitor in a new market.
• C)establish a subsidiary in a market where tougher trade restrictions will adversely affect the firm's export volume.
• D)establish subsidiaries in markets where competitors are unable to produce the identical product.

---

Definitions:

Use It or Lose It

A principle suggesting that failing to use certain skills or abilities can lead to their deterioration over time.

Replacement Theory

A hypothesis or theory suggesting that one entity, idea, or system takes the place of another due to various factors such as evolution, innovation, or cultural shifts.

Cue-dependent Forgetting

A theory suggesting that forgetting occurs when the cues present at the time of encoding information are not present at the time of recall.

Autobiographical Memory

A type of memory system consisting of episodes recollected from an individual's life, based on a combination of episodic (personal experiences and specific objects, people, and events experienced at particular time and place) and semantic (general knowledge and facts about the world) memory.