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Question
To be classified as an MNE, a company must have productive activities in at least ________ countries.
A) two
B) three
C) four
D) twenty
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Describe the three exchange rates that can be used to translate foreign currencies into the corporate currency in setting budgets and in the subsequent tracking of performance that Lessard and Lorange pointed out.
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Most subsidiaries of an international business operate in uniform environments.
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Performance of international subsidiaries depends on the transfer price set up by the corporation.
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A _____ between two countries is an agreement specifying which items of income will be taxed by the authorities of the country where the income is earned.
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D) reduce the fixed costs of establishing a subsidiary.
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By pooling cash resources centrally, firms can
A) better handle short-term cash needs of subsidiaries.
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C) reduce the total size of the cash pool it must hold in liquid accounts.
D) avoid government-imposed restrictions on capital flows.
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Pooling the cash of all the subsidiaries centrally
A) lowers the interest rate earned.
B) reduces the earning potential for firms.
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Money management decisions attempt to manage the firm s _____ most efficiently.
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Critics of adjusting discount rates to reflect a location s riskiness argue that it
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B) penalizes distant cash flows too heavily.
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_____ is the technique financial managers use to try to quantify the benefits, costs, and risks of an investment.
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_____ occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area.
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B) Trade diversion
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A political benefit of economic integration is that it
A) enables participants to achieve gains from the free flow of trade.
B) enables participants to achieve gains from the free flow of investment.
C) allows countries to specialize in the production of goods and services that they can produce most efficiently.
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_____ eliminates trade barriers between member nations, adopts a common external policy, and permits factors of production to move freely between member countries but it also requires a common currency, harmonization of members tax rates, and a common monetary and fiscal policy.
A) A free trade area
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Q:
Which of the following is a reason the European Union is considered an imperfect economic union?
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Political turmoil and tribalism in several African nations has persistently impeded any meaningful progress in economic integration.
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Which of the following established the second largest currency zone in the world?
A) Treaty of Rome
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The United States, Canada, and Mexico are member nations of
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In ____, similarities in the underlying structure of economic activity make it feasible to adopt a single currency and use a single exchange rate as an instrument of macroeconomic policy.
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Explain briefly the regulatory influences on pricing.
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⊚ true
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What is a drawback of a just-in-time system?
A) Transport costs are high when using a just-in-time system.
B) It leaves a firm without a buffer stock of inventory.
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When a multinational corporation buys products or services from one of its suppliers that produces them somewhere else, whether domestically or globally, it is referred to as
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D) co-sourcing.