Firms Use Four Basic Strategies to Compete in the International

question 72

Multiple Choice

Firms use four basic strategies to compete in the international environment.These are:

• A)global standardization strategy,a localization strategy,a transnational strategy,and an international strategy.
• B)a cross-cultural strategy,a trade-block strategy,a regional strategy,and a world strategy.
• C)a domestic-based strategy,an economy of scale strategy,a nonelastic market strategy,and a skimming price strategy.
• D)a location economy strategy,a single-location production strategy,a global strategy,and an inelastic demand strategy.

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Definitions:

FTC

The Federal Trade Commission, a U.S. agency responsible for consumer protection and maintaining competition.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at prohibiting certain actions that lead to anti-competitiveness, such as price discrimination, exclusive dealings, and mergers that substantially lessen competition.

Antitrust Violation

An action that contradicts laws established to prevent unfair competition and promote a healthy market environment.

Horizontal Mergers

The combination of two or more companies at the same stage of production in the same or different industries.