A purely domestic firm that sources its products,sells its products,and raises its funds domestically
A)can face stiff competition from a multinational corporation that can source its products in one country,sell them in several countries,and raise its funds in a third country.
B)can be more competitive than an MNC on its home turf due to superior knowledge of the local market.
C)can still face exchange rate risk,just like an MNC.
D)all of the options

Question

Quizplus · Accepted Answer

Even if a domestic firm sources, sells and raises funds only domestically, it can still face competition from multinational corporations that have access to multiple countries. Additionally, the domestic firm can still face exchange rate risk if it engages in international transactions or competes with MNCs in the domestic market. However, the domestic firm may have an advantage over MNCs due to its superior knowledge of the local market.

A Purely Domestic Firm That Sources Its Products,sells Its Products,and