An MNC Considers Direct Foreign Investment in Germany

question 53

Multiple Choice

An MNC considers direct foreign investment in Germany. It is mainly concerned with the subsidiary's ability to generate sufficient sales there. The country risk characteristic that would have the largest direct impact on the subsidiary's sales in Germany is:

• A) the host government's tax rates charged on remitted earnings.
• B) the possibility of blocked funds.
• C) the state of the economy in Germany.
• D) the parent's cost of capital.

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Definitions:

Announce

To make a public or formal declaration about a fact, occurrence, or intention.

Grades

Evaluations or scores given to students based on their performance in academic coursework or examinations.

Class Participation

The involvement or engagement of students in the learning process, often through asking questions, contributing to discussions, or participating in class activities.

Emotion-Based Strategy

An approach to decision-making and problem-solving that prioritizes emotional responses and feelings over logical analysis or objective data.