Which of the Following Statements Best Describes Multinational Firms

question 12

Multiple Choice

Which of the following statements best describes multinational firms?

• A)Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.
• B)Multinationals are defined as companies heavily engaged in exporting and importing.
• C)All multinationals must enter the fourth stage of globalization before they are fully internationalized.
• D)Multinationals often develop their global businesses in stages.

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Definitions:

Income

The money or other benefits received, usually in return for labor, services, or investment, constituting the basis for consumption and savings.

MRP Curve

The Marginal Revenue Product curve, representing the additional revenue generated by employing one more unit of a resource or factor of production.

Labor Demand

The complete number of employees that employers are prepared and capable of hiring at a certain salary level during a specific timeframe.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain those activities.