Which of the following would most likely pressure an MNE to globally integrate its value activities?
A)costs of producing in separate facilities exceeding those of producing in a single facility
B)variability in consumers' tastes and preferences shifting across countries
C)market pressures to add new product features continually
D)demands imposed by host country governments

Question

Quizplus · Accepted Answer

When the costs of producing in separate facilities exceed those of producing in a single facility, an MNE is likely to integrate its value activities globally in order to reduce costs and gain efficiency. This is because producing in separate facilities leads to duplication of resources, and coordinating across different locations can be challenging and expensive. Therefore, integrating through a single facility is likely to be more cost-effective. Option B is not applicable, as variability in consumers' tastes and preferences shifting across countries is likely to require customization and localization of value activities, rather than integration. Option C may require innovation and adaptation, but may not necessarily require global integration. Option D could be a pressure, but may not necessarily lead to global integration, as an MNE may choose to exit or minimize operations in certain host countries.

Which of the Following Would Most Likely Pressure an MNE