A Form of MNC Which Exposes the Firm to the Least

question 95

Multiple Choice

A form of MNC 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:

Coupon Rate

The interest rate stated on a bond when it's issued, which represents the annual interest payment made by the issuer relative to the bond's face value.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including both interest payments and the gain or loss on the principal, at the current market price.

Balance Sheet

A summary presenting the financial condition of an organization, showing the company's assets, debts, and owner's equity at a certain time.

Long-term Debt

Debt that is due to be paid back over a period greater than one year, used as a way for businesses to finance their operations or expand.