The idea behind multipoint competition is to ensure that
A)a rival does not dominate one market and use the profits from there to drive competitive attacks elsewhere.
B)the competitors cooperate with each other to establish a cartel.
C)no other competitors can enter the market unless they resort to licensing or franchising with the initial pioneers.
D)growing technologies or business methods in new markets are transferred to established markets.
E)the firms in an industry prefer FDI over licensing or exporting.

Question

Quizplus · Accepted Answer

The idea behind multipoint competition is to prevent one competitor from dominating a single market and using the profits to attack competitors in other markets. Multipoint competition occurs when two or more firms compete against each other in different geographic locations. The aim is to ensure that no firm dominates any one market, preventing them from having the resources to launch aggressive attacks on competitors elsewhere.

The Idea Behind Multipoint Competition Is to Ensure That