A Multinational Enterprise (MNE)is Said to Be Pursuing a Multidomestic

question 26

Multiple Choice

A multinational enterprise (MNE) is said to be pursuing a multidomestic strategy when it

• A) is pursued in response to low pressure for local responsiveness and low pressure for cost reduction.
• B) attempts to reap significant economies of scale by pursuing a global division of labor based on wherever best-of-class capabilities reside at the lowest cost.
• C) attempts to maximize local responsiveness, hoping that the host country consumers will perceive it to be a local company.
• D) operates on the assumptions made in the globalization hypothesis in order to lower costs.

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Definitions:

Catharsis Theory

The proposition that expressing negative emotions produces a healthy release of those emotions and is therefore good for the psyche.

Expressing Anger

The process of communicating or demonstrating feelings of anger, which can range from verbal expression to physical acts.

Healthy Release

A process or activity that allows an individual to effectively express or let go of pent-up emotions, stress, or tension, contributing to psychological well-being and stress relief.

Hedonic Treadmill

A psychological phenomenon that suggests people tend to return to a relatively stable level of happiness despite major positive or negative events or life changes.