Which of the following statements regarding the free market view is true?
A. According to the free market view, MNEs decrease the overall efficiency of the world economy.
B. The free market view argues that FDI is a benefit to both the source country and the host country.
C. According to the free market view, MNEs can never be instruments of economic development, only of economic domination.
D. According to the free market view, FDI is beneficial to the host country of an MNE but it is harmful for the home country of the MNE.
E. The free market view traces its roots to Marxist political and economic theory.
B
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Indicate whether the statement is true or false
In which of the following circumstances does a global standardization strategy make the most sense?
a. Global market standardization is not possible, and there are no significant economies of scale to be realized from centralizing global manufacturing. b. Global market standardization is possible, but there are no significant economies of scale to be realized. c. Global market standardization is not possible, but there are significant economies of scale to be realized from centralizing global manufacturing. d. Consumer tastes and preferences differ among national markets, and economies of scale are insubstantial. e. Global market standardization is possible, and there are significant economies of scale and location economies to be realized.