When commodity-like products are transferred internally between an MNE's business units,global business managers will principally develop internal quasi-markets to coordinate cross-border flows of materials,components and finished products.

Question

Quizplus · Accepted Answer

Internal quasi-markets are the principal means of coordination with respect to commodity-like products because global product managers recognize that internal transfers should reflect the competitive conditions set by the external environment.It is not uncommon for global product managers to negotiate with the subsidiary managers of an MNE with respect to issues such as product design,price and delivery schedule in order to position the subsidiary managers to meet local market needs.

When Commodity-Like Products Are Transferred Internally Between an MNE's Business