Multinational Organizations Can Shop from Country to Country and Cut

question 120

Multiple Choice

Multinational organizations can shop from country to country and cut costs through

• A) higher taxes and tariffs.
• B) higher wage scales.
• C) higher indirect costs.
• D) more stringent regulations.
• E) lower wages, lower indirect costs, and lower taxes and tariffs.

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Definitions:

Default Risk Premiums

The additional yield that investors demand for holding a bond that has a risk of default over a risk-free security.

Treasury Bond

A long-term, interest-bearing security issued by the government, with a maturity period typically longer than ten years.

Xerox

A corporation known primarily for its photocopying products and technology, though it has diversified into digital printing and document solutions.