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1. Multinational enterprises Aa Aa Which of the following are common characteris

ID: 1132643 • Letter: 1

Question

1. Multinational enterprises Aa Aa Which of the following are common characteristics of multinational enterprises (MNEs)? Check all that apply. Diversified operations Foreign sales represent a high proportion of total sales Company headquarters are always located in the country where production occurs Acquisitions in nonrelated markets Low labor productivity Create the demonstration effect Complete the following table by indicating whether each assumption is used by the multinational-enterprise analysis, the conventional trade theory, or both. Conventional Assumption Goods are exchanged between independent organizations. A competitive pricing system is not the only factor determining sales. Products move among nations. MNE Analysis Trade Model

Explanation / Answer

The common characteristic of a Multinational Enterprises are:-

-foriegn sales represent a high proportion of total sales.

-diversified operations

- acquisitions in non-related market

ASSUMPTIONS:-

-Conventional trade model

-both

-MNE analysis

international joint venture:-

-joint venture may suffer from the problem of two masters

-joint venture help to prevent protectionism against imports