__________ Firm Engages in Trade and Marketing in Different Countries

question 220

Multiple Choice

__________ firm engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

• A)multidomestic
• B)meganational
• C)international
• D)multinational
• E)transnational

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Definitions:

Foreign Prices

The cost or value of goods and services from a country different from the domestic market, often influenced by currency exchange rates.

Real Exchange Rate

The rate at which a person can trade the goods and services of one country for the goods and services of another, adjusted for inflation.

Purchasing-power Parity

a theory that in the long run, exchange rates ought to adjust so that an identical good in different countries will have the same price when expressed in a common currency.

Nominal Exchange Rate

The rate at which one country's currency can be exchanged for another country's currency without adjusting for inflation.