Which of the Following Is True of the Multinational Approach

question 54

Multiple Choice

Which of the following is true of the multinational approach to international competition?

• A) The subsidiaries are completely under the control of the parent company.
• B) The parent company allows the subsidiaries to respond to local conditions.
• C) The companies have centralized manufacturing facilities.
• D) The subsidiaries depend completely on the parent company for new products.
• E) The tastes and preferences of local consumers are ignored.

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Definitions:

Direct Investment

The practice of purchasing a controlling interest in a foreign business or starting a new enterprise in a foreign country as a means of entering a market.

U.S. Products

Goods and services that are produced within the United States, reflecting the country's quality standards, regulations, and production capabilities.

Foreign Currencies

Monetary units issued by countries other than one's own, used in international trade and financial transactions or as an investment strategy.

Exporting

Conducting transactions involving the sale of items or services from one country to customers located in another nation.