What Is a Difference Between an International Firm and a Multinational

question 5

Multiple Choice

What is a difference between an international firm and a multinational firm?

• A) Multinational firms design, produce, and market products in many nations, whereas international firms are based primarily in one nation.
• B) International firms design, produce, and market products in many nations, whereas multinational firms are based primarily in one nation.
• C) International and multinational firms are the same thing.
• D) Multinational firms are concerned primarily with foreign markets, whereas international firms are concerned primarily with the domestic market.
• E) International firms are concerned primarily with foreign markets, whereas multinational firms are concerned primarily with the domestic market.

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Definitions:

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price.

Four-Firm Concentration Ratio

A metric that measures the market share of the four largest firms within an industry, indicating the level of competition.

Monopolistically Competitive

Describes a market structure where many companies sell products that are similar but not identical, allowing for significant competition.

Monopolist's Demand Curve

A graphical representation showing how the quantity demanded by the market varies with price, uniquely for monopolies where the firm's demand curve is also the market demand curve.