Answer :
Final Answer:
US automotive firm manufacturing in Eastern Europe is an example of Market seeking strategic motive to become an MNE
Explanation:
When a US automotive firm decides to establish manufacturing operations in Eastern Europe, it is primarily driven by a market-seeking strategic motive. This means that the firm is expanding its operations to tap into the Eastern European market's potential for growth and profitability. Eastern Europe offers a significant consumer base with rising income levels and demand for automobiles.
By setting up manufacturing facilities in this region, the company can reduce transportation costs, minimize trade barriers, and adapt its products to local preferences more effectively.
Additionally, Eastern Europe's strategic location provides access to other emerging markets in the region. This expansion aligns with the market-seeking motive, as the firm aims to capture market share, increase sales, and enhance its global competitiveness. It is essential to note that market-seeking motives are common drivers for multinational enterprises (MNEs) looking to expand into new regions to capitalize on market opportunities and establish a strong presence.
In summary, the US automotive firm's decision to manufacture in Eastern Europe exemplifies a market-seeking strategic motive, where the company seeks to access and capitalize on the growing market potential in the region. This motive drives its expansion as an MNE in pursuit of greater market share and profitability.
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