Multiple Choice
To enter markets where superior profits are possible, 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 whose business cycles differ from those where existing subsidiaries are based.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Assume a U.S. MNC initiates direct foreign
Q11: Which of the following purchases does not
Q14: The most important cost-related motive for direct
Q20: In assessing the risk of an individual
Q28: Assume a U.S. firm initiates direct foreign
Q33: An MNC will likely benefit most from
Q34: Assume the correlation coefficient between the return
Q35: Which of the following is not a
Q35: A country presently has a high level
Q41: A country with high unemployment could best