Two Types of Competitive Pressure That Affect the Ability of MNEs

question 79

True/False

Two types of competitive pressure that affect the ability of MNEs to compete in the global marketplace are pressure for cost reductions and pressure for local responsiveness.

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Definitions:

Sandwich Shop

A food establishment that specializes in selling sandwiches and often other types of lunch food and beverages.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Chain Saws

Mechanical tools equipped with a rotating chain with teeth that are used for cutting through wood or other materials.

Perfectly Inelastic

A situation in which demand or supply does not respond at all to changes in price levels, illustrated by a vertical demand or supply curve.