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PSYCHO15rus [73]
3 years ago
5

Which of the following is a drawback faced by multinational enterprises (MNEs)pursuing an international strategy?

Business
1 answer:
stiks02 [169]3 years ago
6 0

Answer:

Option b. They are highly affected by exchange rate fluctuations.

Explanation:

international strategy can be defined simply as the means or strategy by  which a firm sells its goods and services outside its domestic market. they helps by  enabling firms to leverage their home-based core competencies in foreign markets.

A multinational enterprise (MNE)  can be said to be a company that deploys resources and capabilities in the procurement, production, and distribution of goods and services in at least two countries and it can only pursue international strategy if only when it enjoys a large domestic market, strong reputation, and brand name. exchange rate fluctuations affects MNE pursuit of international strategy.

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Total explicit cost = $39,000

Implicit cost = $40,420

Accounting profit = $108,600

Economic profit = $68,180

Explanation:

Total explicit costs will be the total amount spent.

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Implicit costs= 40000 + (6000 * 0.07) =$40,420

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Economic profit = Total revenue - Total opportunity cost.

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Therefore economic profits =

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Therefore,

Total explicit cost = $39,000

Implicit cost = $40,420

Accounting profit = $108,600

Economic profit = $68,180

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Read 2 more answers
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Answer:

direct, inverse

Explanation:

Hope it helps

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