To Enter Markets Where Superior Profits Are Possible, an MNC

question 27

Multiple Choice

To enter markets where superior profits are possible, an MNC should:

• A) acquire a competitor that has controlled its local market.
• B) establish a subsidiary or acquire a competitor in a new market.
• C) establish a subsidiary in a market where tougher trade restrictions will adversely affect the firm's export volume.
• D) establish subsidiaries in markets whose business cycles differ from those where existing subsidiaries are based.

---

Definitions:

Communication Problems

Difficulties in exchanging information, where messages may not be effectively transmitted or understood.

Genital Level

A phase in psychoanalytic theory associated with mature adult sexuality and the harmonious integration of love and sexual desire, typically emerging during puberty.

Psychoanalyst

A therapist who practices psychoanalysis, a therapeutic technique originally developed by Sigmund Freud that explores unconscious motivations and conflicts.

Self-Esteem

The subjective evaluation of one's own worth or value as perceived by the individual.