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32)the Best Means to Accomplish the Revenue-Related Motive of Attracting

Question 32
Multiple Choice

32)The best means to accomplish the revenue-related motive of attracting new sources of demand is to: 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.

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Q 33
33)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.
Q 34
34)To exploit monopolistic advantages, 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 where competitors are unable to produce the identical product.
Q 35
35)To fully benefit from economies of scale, an MNC should: A) establish a subsidiary in a new market that can sell products produced elsewhere. B) establish a subsidiary in a market that has relatively low costs of labor or land. C) establish a subsidiary in a market where raw materials are cheap and accessible. D) participate in a joint venture in order to learn about a production process or other operations.
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