Two types of competitive pressure that affect the ability of multinational enterprises to compete in the global marketplace are pressure for cost reductions and pressure for local responsiveness.

Question

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Pressure for cost reductions refers to the pressure on multinational enterprises to lower their production costs in order to remain competitive. Pressure for local responsiveness refers to the pressure to adapt products, services, and business practices to the unique needs and preferences of local markets. Both types of pressure can affect the ability of multinational enterprises to compete in the global marketplace.

Two Types of Competitive Pressure That Affect the Ability of Multinational