A multinational firm may wish to expand abroad because demand abroad is the result of the move abroad by established customers. What is the term used to describe this?

Question

Quizplus · Accepted Answer

Derived demand refers to the demand for a particular product or service that arises from the demand for another product or service. In this case, the demand for the multinational firm's product or service abroad is a result of the move abroad by established customers, hence it is a derived demand. The other options are not relevant to the given scenario.

A Multinational Firm May Wish to Expand Abroad Because Demand