Which of the Following Is True of the Multinational Approach

question 27

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 system lowers manufacturing costs by eliminating duplication of effort.

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Definitions:

Portfolio Investment

In international finance, investment in the securities of a foreign company or government.

French Company

A business entity that is registered and operates within France or is formed under French law.

Indirect Quote

An exchange rate expressed as the amount of foreign currency one unit of domestic currency can buy.

Direct Quote

An exchange rate presented as the local currency for each unit of the international currency.