Which of the Following Is True of the Multinational Approach

question 27

Multiple Choice

Which of the following is true of the multinational approach to international competition?

• A)The subsidiaries are completely under the control of the parent company.
• B)The parent company allows the subsidiaries to respond to local conditions.
• C)The companies have centralized manufacturing facilities.
• D)The subsidiaries depend completely on the parent company for new products.
• E)The system lowers manufacturing costs by eliminating duplication of effort.

---

Definitions:

Service Technicians

Professionals who specialize in the maintenance, repair, or installation of technical equipment, often requiring specific skills and certifications.

Downstream Firms

Companies that operate closer to the end-user or consumer in the supply chain, typically involved in the distribution, retail, or post-production stages.

Upstream Firms

Companies involved in the initial stages of production or service provision, typically involving the extraction or production of raw materials.

Market Power

The ability of a company to influence or control prices and market conditions within an industry due to its size or market share.