Which of the following more likely represents a threat to a multinational company like Toyota?
A)Higher prices charged by Toyota's competitors.
B)Lower interest rates around the world that makes cars more affordable.
C)Toyota's bad image among teenagers.
D)Kia and Hyundai's entry in markets traditionally dominated by Toyota.

Question

Quizplus · Accepted Answer

The entry of new competitors in markets traditionally dominated by Toyota would pose a threat to the company's market share and profitability. Compared to the other options listed, this is a more direct threat to Toyota's business operations. Higher prices charged by competitors would likely result in lower market share, but this is something that can be countered by Toyota with pricing strategies or improvements in product offerings. Lower interest rates could potentially benefit Toyota by making cars more affordable for customers, and Toyota's image among teenagers, while important for the company's long-term reputation, is unlikely to have an immediate impact on sales and profitability.

Which of the Following More Likely Represents a Threat to a Multinational