Which are the two primary pressures MNEs confront?
A) Ethics and governance
B) Cost reductions and local responsiveness
C) Liability of foreignness and investment risk
D) Local and foreign government

Question

Quizplus · Accepted Answer

The two primary pressures that MNEs confront are cost reductions (i.e. creating global efficiencies in operations) and local responsiveness (i.e. adapting to the specific needs of local markets). These pressures are often in conflict and require careful balance in order for MNEs to succeed in a global market. Option A is a factor but not one of the two primary pressures, while option C refers to specific risks and option D is a specific factor to local and foreign governments. The two primary pressures that multinational enterprises (MNEs) confront are cost reductions and local responsiveness. Cost reductions involve the pressure to minimize costs in order to remain competitive, while local responsiveness involves the need to adapt to local market and cultural conditions. These pressures are often in conflict with each other, and MNEs must strike a balance between them in order to succeed in international markets. The other choices are not the primary pressures that MNEs confront.

Which Are the Two Primary Pressures MNEs Confront