Which of the Following Statements Is True About Organizing the Multinational

question 27

Multiple Choice

Which of the following statements is true about organizing the multinational company?

• A) Globalization, as a competitive strategy, is inherently less vulnerable to risk than a multidomestic or domestic strategy.
• B) In determining whether or not to globalize a particular business, managers should look first at their competitors instead of their own industry.
• C) Market, economic, environmental, and competitive factors do not influence the potential gains to be realized by following a global strategy.
• D) Whether a company should undertake a multidomestic or global approach to organizing its international operations will largely depend on the nature of the company and its products.

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Definitions:

Tariff

A tax imposed on imported goods to protect domestic industries or to generate revenue.

Tariff Revenue

Income that governments earn from imposing taxes on imported goods to protect domestic industries or generate income.

Economic Strategy

A plan of action designed to achieve specific financial or market objectives.

Exports

Items or services that are manufactured in one nation and purchased by consumers in a different country.