Which of the Following Statements About Multinational Firms Is True

question 116

Multiple Choice

Which of the following statements about multinational firms is true?

• A) Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.
• B) Multinationals are defined as companies heavily engaged in exporting and importing.
• C) All multinationals must enter the fourth stage of globalization before they are fully internationalized.
• D) Multinationals often develop their global businesses in stages.
• E) The five stages of globalization closely mirror the five stages of the product life cycle.

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Definitions:

Point of Difference

A unique feature or benefit that sets a product or service apart from its competitors in the eyes of target customers.

Channel Conflict

A situation where channels for the same product or service compete with each other, potentially reducing profitability for one or all channels involved.

Exclusive Distribution

A distribution strategy where a product is sold exclusively through a specific retailer or distributor.

Distribution Density

The measure of how widely and closely a product or service is made available to potential customers through various retail outlets or distribution channels.