Opportunities for the MNC to Reduce Operating Expenses Include Each

question 20

Multiple Choice

Opportunities for the MNC to reduce operating expenses include each of the following EXCEPT

• A) economies of scale
• B) economies of scope
• C) flexibility in global site selection
• D) global branding
• E) low-cost labor

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Definitions:

Discount Rate

The interest rate charged by central banks to commercial banks for short-term loans.

Expansionary policy

Economic policies aimed at increasing the supply of money or reducing taxation to stimulate economic growth, typically undertaken during a recession.

Contractionary Policy

Economic policies intended to reduce spending and slow down inflation, often through increased interest rates or reduced government spending.

Banking System

The network of institutions, including commercial banks, central banks, and other financial intermediaries, that provide banking services and facilitate financial transactions within an economy.