Contrast the Strategies of Multidomestic Industries and Global Industries

question 33

Essay

Contrast the strategies of multidomestic industries and global industries. Why is there a difference in strategies between the two industries? Provide an example for illustration.

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Definitions:

Tight Money Policy

A monetary policy that makes borrowing money more expensive and less accessible in order to reduce inflation.

Interest Rates

The proportion of interest a borrower is charged for loaned funds.

Bank Credit

The total amount of borrowing capacity available to an individual or entity from a bank or other financial institutions, enabling the borrower to make purchases or investments.

Reserve Requirement

The minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lending out, set by the central bank.