The ______________________ is a strategy by which MNEs defend their preexisting market share achieved through exports by switching to direct production inside the region.

Question

Quizplus · Accepted Answer

Defensive Export Substituting Investment is the strategy used by MNEs to defend their preexisting market share achieved through exports by switching to direct production inside the region. This helps them to protect their market share from local competitors who might enter the market and steal their profits. Offensive Export Substituting Investment, on the other hand, is a strategy used by MNEs to gain market share in a new market by investing in direct production within that market. Rationalized Foreign Direct Investment refers to the efficient use of resources by MNEs, while Reorganization Investment refers to the investment made to restructure a company.

The ______________________ Is a Strategy by Which MNEs Defend Their