Why Do Multinational Corporations Often Invest in Advanced Industrialized Countries

question 49

Multiple Choice

Why do multinational corporations often invest in advanced industrialized countries?

• A) They offer the largest markets for goods and services.
• B) The control of operations is in the hands of local partners in these countries.
• C) They do not have any legal restrictions related to imports.
• D) The cost of doing business in these countries is significantly less.

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Definitions:

Market Development

A strategy aimed at entering new markets or segments to expand a company’s customer base for its current products or services.

BCG Portfolio Analysis

A strategic business tool developed by the Boston Consulting Group to help organizations prioritize which products or units to invest in based on market growth and market share.

Market Growth Rate

The annual rate of growth of the specific market in which the product competes.

Vertical Axis

In a graph or chart, the vertical line to the left side that typically represents the range of values for the variable measured.