An MNC Will Likely Benefit Most from Diversifying If

question 2

Multiple Choice

An MNC will likely benefit most from diversifying if:

• A) the correlations between country economies are high.
• B) the correlations between country economies are low.
• C) the variability of all country economy levels is high.
• D) the correlations between country economies are low AND the variability of all country economy levels is high.

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Definitions:

Social Security

A federal program in the United States that provides retirement, disability, and survivors benefits to eligible individuals.

Married, Filing Jointly

A tax filing status available to married couples that allows them to file one tax return jointly, combining their incomes and deductions.

Marginal Ordinary Income Tax Rate

The tax rate that applies to the last dollar of the taxpayer's income, influencing decisions on additional income.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.