Which of the Following Statements Most Accurately Describes the Relationship

question 13

Multiple Choice

Which of the following statements most accurately describes the relationship between trading groups and MNEs?

• A)Trading groups have no influence on the size of the regional market.
• B)Regional trading groups can define the rules under which companies must operate within that region.
• C)Companies never need to change their organizational structure to take advantage of regional trading groups.
• D)Regional trading groups have no influence on an MNE's strategy since they operate worldwide.

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Definitions:

Vertical

Relating to a structure or position that is straight up and down, in alignment with the direction of gravity.

Horizontal Restraint

involves agreements among competitors operating at the same level of the market or supply chain to limit competition or manipulate market conditions.

Trade

The exchange of goods, services, or both between two or more parties, either within a country or internationally.

Price Fixing

An illegal practice where competing companies agree on selling prices of their products or services, rather than allowing market forces to set them.