How can an MNE overcome its inherent disadvantages?
A. By producing more than two products in which it has comparative advantage
B. By expanding its operation in more than two host countries
C. By owning one or more assets that are not owned by its local competitors in the host country
D. By borrowing funds from the host country rather than transferring funds from the parent firm
Answer: C
You might also like to view...
When the Fed lowers the federal funds rate, it can lead to
A) the Fed selling government securities. B) an increase in lending by banks. C) a decrease in demand deposits. D) a decrease in the quantity of money.
Explain the law of supply. What does the law of supply imply about the shape of the supply curve?
What will be an ideal response?
According to proponents of the signaling theory of education,
a. schooling has no real productivity benefit. b. no one person finds it easier to earn a college degree than does any other person. c. the human-capital view of education is entirely correct. d. employers send signals to young people to persuade them to expend whatever effort is necessary to earn college degrees.
According to most economists, fiscal policy is:
A. not an effective tool for fine-tuning the economy. B. always ineffective because of crowding out. C. effective only when potential output is perfectly known. D. least useful in a serious economic crisis.