When products of high strategic importance are transferred internally between an MNE's business units,global business managers will prefer to facilitate these transfers via internal quasi-markets,rather than exerting direct control over quantities shipped and prices charged.

Question

Quizplus · Accepted Answer

Direct central control over quantities shipped and prices charged is more likely for products of high strategic importance.For example,direct central control is employed by Pfizer's central coordination of quantities and pricing of the active ingredients of Viagra,or Coca-Cola's tight corporate control of the supply of Coke syrup worldwide.

When Products of High Strategic Importance Are Transferred Internally Between