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

Question

Quizplus · Accepted Answer

Pressure for cost reductions refers to the pressure for MNEs to reduce their costs in order to remain competitive in the global marketplace. This pressure can come from factors such as competition, changes in exchange rates, and increasing input costs. Pressure for local responsiveness, on the other hand, refers to the pressure for MNEs to adapt their products and services to local market conditions and preferences. This can include factors such as cultural differences, regulatory requirements, and customer needs and preferences. Both types of pressure can have a significant impact on the ability of MNEs to compete in the global marketplace.

Two Types of Competitive Pressure That Affect the Ability of MNEs