Which of the Following Statements Regarding Multidomestic and Global Competition

question 79

Multiple Choice

Which of the following statements regarding multidomestic and global competition is false?

• A) In global competition,rivals vie for worldwide market leadership and the leading competitors compete head to head in the markets of many different countries.
• B) In globally competitive industries,a company's competitive position in one country both affects and is affected by its position in other countries.
• C) One of the features of multidomestic competition is there is greater cross-country variation in market conditions and the nature of the competitive contest among rivals than tends to be the case in globally competitive markets.
• D) With multidomestic competition,the competitive contest is localized,with rivals battling for national market leadership;moreover,winning in one country market does not necessarily signal that a company has the ability to fare well in the markets of other countries.
• E) In global competition,the size of a firm's worldwide competitive advantage (or disadvantage)equals the sum of the competitive advantages (or disadvantages)it has in each country market where it competes.

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Definitions:

Executory Costs

Executory costs are expenses associated with fulfilling the terms of a contract, typically not included in the initial acquisition cost of an asset.

Guaranteed Residual Value

The minimum future value of an asset as guaranteed by a third party or agreement upon the asset's lease end.

Initial Direct Costs

Initial Direct Costs are expenses directly associated with negotiating and arranging a lease that are not included in the net investment in the lease.

Sale-leaseback

A transaction where an asset is sold and immediately leased back from the new owner, allowing the seller to continue using the asset while freeing up capital.