ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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transnational corporations
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basic industry
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mom and pop stores
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maquiladoras
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Detailed explanation-1: -Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. As the world’s largest coffeehouse chain, Starbucks is seen to be the main representation of the United States’ second wave of coffee culture.
Detailed explanation-2: -Starbucks, a US-based firm that has majored in the coffee industry, is considered monopolistic competition.
Detailed explanation-3: -Starbucks international strategy relies on low integration and high responsiveness (multi-domestic), which is best reflected in Entry Modes and Pricing Strategies. The goal is to spread Starbucks’ coffee culture while adapting to local tastes and preferences.
Detailed explanation-4: -Starbucks has adopted a multi-domestic company approach in its internationalization strategy. Multidomestic companies are characterized as having essential ties with local communities. This MNC type is an independent sub-unit from the headquarters and other subsidiaries (Harzing, 2000).