3 years ago

A purely domestic firm sources its products, sells its products, and raises its funds domestically

Business

1 answer:

Yanka [14]3 years ago

3 0

Answer:

The correct answer is option D.

Explanation:

A purely domestic firm can face competition from an MNC. An MNC has the advantage of more than one sources of inputs and more than one product market. But the domestic firm also possesses an advantage of having a thorough knowledge of the local market as they have operated there unlike MNCs.

The domestic even though operating in the domestic territories may still face foreign exchange risk. This is because their competitors may be operating internationally.

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