A Disadvantage of a Multinational Model Is That

question 114

Multiple Choice

A disadvantage of a multinational model is that

• A)problems in transferring core skills are created.
• B)each subsidiary must respond to specific consumer needs.
• C)transfer pricing presents difficulties.
• D)manufacturing costs are generally higher.
• E)coordination of efforts within countries is more difficult.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of innovations.

Production Possibility Frontier

A curve demonstrating the maximum potential output levels of two goods or services an economy can achieve when all resources are efficiently utilized.

Economic

Relating to the principles and practices of economics or the economy; the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Entrepreneur

An individual who starts and runs a new business, taking on financial risks in the hope of profit.