Assume the Parent of a U

question 40

Multiple Choice

Assume the parent of a U.S.-based MNC plans to completely finance the establishment of its British subsidiary with existing funds from retained earnings from U.S. operations. According to the text, the discount rate used in the capital budgeting analysis on this project will be most affected by:

• A) the cost of borrowing funds in the United Kingdom.
• B) the economic conditions in the United Kingdom.
• C) the parent's cost of capital.
• D) the cost of borrowing funds in the United Kingdom AND the economic conditions in the United Kingdom.

Recognize the influence of self-esteem levels on persuasibility.

Understand the principles of the heuristic-systematic model of persuasion.

Identify various tactics used in social influence and compliance, including the foot-in-the-door and low ball tactics.

Understand the concept of cognitive dissonance and its implications on attitude change.

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Definitions:

Motivated

Motivated describes the psychological force that drives an individual to take action towards a desired goal, influenced by factors such as personal interest, reward, or obligation.

Self-Actualization

The realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Physiological Needs

are the basic physical requirements for human survival, such as air, water, food, shelter, and sleep, forming the base of Maslow's hierarchy of needs.

Belongingness Needs

The innate human need to feel connected and accepted by others, often considered a fundamental human motivation.