The ability of a multinational or global competitor to shift production from country to country to take advantage of exchange rate fluctuations,energy costs,wage rates,or changes in tariffs is an example of
A)a profit sanctuary.
B)cross-border coordination.
C)an international strategic alliance.
D)cross-market subsidization.
E)cross-market differences in cultural,demographic,and market conditions.

Question

Quizplus · Accepted Answer

This is an example of cross-border coordination because the multinational or global competitor is able to adjust their production and operations across different countries to take advantage of various factors such as exchange rate fluctuations, energy costs, and wage rates. This requires coordination across borders in order to make these adjustments effectively. Profit sanctuary pertains more to protecting profits within a specific market or product, international strategic alliance refers to a partnership between companies from different countries, cross-market subsidization refers to using profits from one market to subsidize operations in another, and cross-market differences pertain to differences in cultural, demographic, and market conditions between different international markets.

The Ability of a Multinational or Global Competitor to Shift