An MNC uses which international strategy for entering a foreign market by combining the higher labor skills and technology available in the developed countries with the lower cost labor available in the developing countries?
A) licensing
B) joint ventures
C) production sharing
D) exporting
E) acquisitions

Question

Quizplus · Accepted Answer

Production sharing is the international strategy used by MNCs to combine the higher labor skills and technology available in developed countries with lower cost labor available in developing countries. This strategy involves sharing the production process between the parent company and the host country's local company. This allows MNCs to reduce their production costs while maintaining quality standards. Licensing involves granting the rights to use a company's intellectual property in exchange for fees, joint venture involves sharing ownership and control of a business with a local company, exporting involves selling goods produced in one country to another, and acquisitions involve purchasing an existing company in a foreign market.

An MNC Uses Which International Strategy for Entering a Foreign