In the case in which foreign affiliates undertake the same kind of production as the parent firm, the affiliate _____ some trade in that product. The affiliate also _____ trade through better local marketing of other products produced by the multinational in other countries.
A)displaces; expands
B)expands, displaces
C)expands; expands
D)displaces; displaces

Question

Quizplus · Accepted Answer

When foreign affiliates undertake the same kind of production as the parent firm, they are likely to displace some trade in that product. However, they can also expand trade through better local marketing of other products produced by the multinational in other countries.

In the Case in Which Foreign Affiliates Undertake the Same