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

Question

Business

Kendall Madden

4 January, 10:42

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

+3

Answers (1)

Know the Answer?

Julia Case · Answer 1

International strategic alliance

Explanation:

A strategic alliance is an understanding between two or more independent companies to cooperate in business for the mutual benefit of all. An international strategic alliance will involve cooperation between countries in different countries. A multi-national has a presence in many countries, with each branch operating with a certain degree of independence.

A multi-national or a global competitor can shift its operation with relative ease between countries that it has branches. If the business condition turns hostile in one country, a multi-national can move its operations to a country with a better trading environment. This will represent an international strategic alliance, which is one advantage of multi-nationals.