When Firms Expand into Global Markets, They Are Faced with the Choice

question 18

Multiple Choice

When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to adapt locally, companies should choose a(n) __________ or __________ in order to compete in the global marketplace.

• A)global strategy; transnational strategy
• B)global strategy: multidomestic strategy
• C)international strategy; global strategy
• D)transnational strategy; multidomestic strategy

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Definitions:

New Diets

Emerging nutritional plans or eating habits that people adopt, often for health, ethical, or environmental reasons.

Manufactured Goods

Items that have been processed from raw materials into finished goods through human or machine effort.

Exports

Goods or services sent from one country to another for sale or trade.

Developed Countries

Nations with advanced economic systems, high standards of living, and well-established infrastructure.