Which of the following is true for a multinational enterprise (MNE)?
A. It usually transfers its liabilities to its foreign subsidiaries.
B. It usually provides intangible assets to its affiliates for their usage.
C. Its affiliates usually get nearly all of their financing from the direct investment flows.
D. Its home-country tax burden is mostly borne by its foreign affiliates.
Answer: B
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Refer to Scenario 11.1. Suppose all five ranchers know that their land that Mariana needs is worth a total of $2 million. If each rancher agrees to sell his or her parcel of land to Mariana for $500,000, Mariana will purchase
A) all five parcels of land and the railway will be built. B) all five parcels of land but the railway will not be built. C) only four parcels of land and the railway will be built. D) no parcels of land and the railway will not be built.
The problem of the commons is the absence of incentives to prevent overuse and depletion of the common resource
Indicate whether the statement is true or false
When a demand curve is perfectly elastic:
A) marginal revenue = average revenue = price. B) marginal revenue > average revenue = price. C) marginal revenue < average revenue = price. D) marginal revenue > average revenue > price.
The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer b. the costs of arbitraging the price difference across markets is large c. the manufacturer acquires the distributer in the lower priced market d. competition provides little ability for the manufacturer to price above marginal cost