A Form of Multinational Corporation Which Exposes the Firm to the Least

question 52

Multiple Choice

A form of multinational corporation which exposes the firm to the least amount political risk, and is therefore the preferred arrangement by both business and foreign governments is called a(an) :

• A) exporter.
• B) licensing agreement.
• C) joint venture.
• D) fully-owned foreign subsidiary.

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Definitions:

Financial Cost

The total expenses incurred by a company in borrowing money, including interest payments, fees, and other charges.

Bowed-Out

Describes a production possibilities curve that is concave from the origin, indicating increasing opportunity costs.

Opportunity Costs

The cost associated with an alternative that is foregone when a particular decision or action is taken.

Manufacturers

Manufacturers are entities engaged in the industrial production of goods from raw materials through the use of machinery and labor.