4.2.5 Global competitiveness

Question 1

What is the benefit of being a multinational company?

Answer 1

• EOS
• more scope to find the best quality resources at the best price.
• Get closer to international companies.
• More scope for knowledge and innovation.
• Spread risk.

Question 2

What is porters cost leadership?

Answer 2

When a business will produce products at the same quality as its competitors but for a cheaper price.

Question 3

What is Porter’s differentiation?

Answer 3

When a businesses products is similar to competitors but it has certain attributes that sets it aside from competitors.
( can charge a premium price)