Despite the Theoretical Elegance of This Hypothesis, Empirical Studies Have

question 62

Multiple Choice

Despite the theoretical elegance of this hypothesis, empirical studies have come to the opposite conclusion. Despite the favorable effect of international diversification of cash flows, bankruptcy risk was only about the same for MNEs as for domestic firms. However, MNEs faced higher costs for each of the following EXCEPT:

• A) agency costs.
• B) political risk.
• C) asymmetric information.
• D) In fact, each of these costs were higher for the MNE than for the domestic firm.

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Definitions:

Glazed Expression

A look on someone's face that shows lack of interest or understanding, often appearing unfocused or distant.

Variety Of Media

The range of different methods or channels through which content can be delivered or communicated, including print, online, broadcast, and social platforms.

Appreciating Diversity

Recognizing and valuing the differences among people, such as culture, race, gender, or beliefs, and understanding that these differences contribute to a richer, more varied experience.

Soft Skill

Personal attributes and interpersonal skills that enhance an individual's interactions, job performance, and career prospects.