Which of the following approaches may be used by multinational companies to deal with the problem of price escalation?
A) Disintermediation
B) Manufacture the product in the foreign country
C) Backward innovation
D) All of the above
E) (a) and (b) only

Question

Quizplus · Accepted Answer

All of the options listed are strategies that multinational companies can use to address the issue of price escalation. Disintermediation involves removing intermediaries to reduce costs, manufacturing in the foreign country can lower production and shipping costs, and backward innovation (developing simpler, more cost-effective products for emerging markets) can also help in reducing the final price to the consumer.

Which of the Following Approaches May Be Used by Multinational