Which are the two primary pressures MNEs confront?
A) Ethics and governance
B) Cost reductions and local responsiveness
C) Liability of foreignness and investment risk
D) Ethics and local responsiveness

Question

Which are the two primary pressures MNEs confront? 
A) Ethics and governance 
B) Cost reductions and local responsiveness 
C) Liability of foreignness and investment risk 
D) Ethics and local responsiveness

Quizplus · Accepted Answer

The two primary pressures that MNEs confront are cost reductions and local responsiveness. MNEs need to reduce costs in order to compete in global markets, but they also need to be responsive to the local cultures, laws, and business practices of the countries in which they operate. MNEs that are able to balance these two pressures effectively are more likely to succeed in the global marketplace. The other options listed are important considerations for MNEs, but they are not the primary pressures.

Which Are the Two Primary Pressures MNEs Confront