Transferring Core Competencies and Resource Strengths from One Country Market

question 21

Multiple Choice

Transferring core competencies and resource strengths from one country market to another is

• A)a good way for companies to develop broader or deeper competencies and competitive capabilities that can become a strong basis for sustainable competitive advantage.
• B)best accomplished with a multidomestic strategy as opposed to a global strategy.
• C)feasible only with a global strategy; it can't be done with a multidomestic strategy.
• D)unlikely to result in a competitive advantage.
• E)nearly always the easiest and most surefire way to build competitive advantage in trying to compete successfully in foreign markets.

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Definitions:

Price Index

A price index measures the average change in prices of a basket of goods and services over time, indicating inflation or deflation trends.

Inflation Rate

Measures the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Nominal Interest Rate

The rate of interest before adjustments for inflation, as quoted by banks and financial institutions.

Real Interest Rate

An interest rate fine-tuned for inflation effects, illustrating the actual charge of borrowing or the factual yield from savings deposits.