Question

In: Finance

A well-established, large U.S.-based MNE may NOT be able to overcome which of the following obstacles...

A well-established, large U.S.-based MNE may NOT be able to overcome which of the following obstacles to maximizing firm value?

Group of answer choices

A foreign competitor with significant comparative advantage across all major products that both companies compete.

an open market place

none of the above

high quality strategic management

Solutions

Expert Solution

Answer-

The correct option is A foreign competitor with significant comparative advantage across all major products that both companies compete.
A well-established, large U.S.-based MNE may find it difficult in overcoming a foreign competitor in maximizing firm value in such a scenario.

A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.

The other options an open market place and higher quality strategic management can be ovecome in maximizing firm value.


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