To Exploit Monopolistic Advantages, an MNC Should

question 62

Multiple Choice

To exploit monopolistic advantages, 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 where competitors are unable to produce the identical product.

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Definitions:

Cache Memory

Small blocks of memory, located directly on and next to the central processing unit (CPU) chip, that act as holding places for recently or frequently used instructions or data that the CPU accesses the most.

Potential Capacity

The maximum output or performance that a system or entity could achieve under ideal conditions.

Mechanical Hard Drive

A data storage device that uses magnetic storage to store and retrieve digital information using one or more rigid rapidly rotating disks coated with magnetic material.

Hyperthreading

A technology that permits quicker processing of information by enabling a new set of instructions to start executing before the previous set has finished.