Which is an economic result when an MNE acts locally responsive?
A) The local government is unhappy.
B) Regulations are loosened.
C) Innovations are limited.
D) Costs are increased.

Question

Quizplus · Accepted Answer

When an MNE acts locally responsive, it tends to adapt to the specific needs and preferences of the local market, which may lead to increased costs due to the customization of products and services. When an MNE acts locally responsive, it means that they adapt to the local market and culture, which can result in increased costs. This is because the MNE may have to change its product or service to fit the local market demands, which may require additional research and development, marketing, and distribution costs.

Which Is an Economic Result When an MNE Acts Locally