The Two Factors That Tend to Determine Whether an Industry

question 116

Multiple Choice

The two factors that tend to determine whether an industry will be primarily multidomestic or primarily global are (1) the pressure for coordination within the MNCs operating in that industry and (2)

• A) the pressure for local responsiveness on the part of individual country markets.
• B) the power of the local country governments to restrict MNC actions.
• C) the need for brand management in the various MNCs operating within that industry.
• D) the importance of differentiating with integrating mechanisms in regional cooperatives.
• E) the likelihood of terrorist activity impacting that industry.

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Definitions:

Marginal Cost

The supplementary cost resulting from manufacturing an extra unit of a good or service.

Typeset

The arrangement and composition of text in preparation for printing and publication.

Inverse Demand Function

A mathematical expression that describes the relationship between the price of a good and the quantity demanded, showing how price changes as a function of demand.

Unit Tax

A tax that is imposed on a per unit basis, meaning that a specific amount is taxed for each unit of a good or service sold.