Which of the Following Is Not a Reason for a Multinational

question 54

Multiple Choice

Which of the following is not a reason for a multinational corporation to create a foreign subsidiary?

• A) expand its foreign market(s)
• B) acquire foreign resources
• C) improve production efficiency
• D) avoid expropriation

Recognize the role of culture in shaping business practices, such as contracts, time management, and communication.

Distinguish between high-context and low-context cultures and their impacts on communication.

Identify how cultures perceive time (sequential/synchronic views) and its impact on management.

Appreciate the importance of understanding cultural differences for global management and international business operations.

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Definitions:

Social Security Taxes

Taxes imposed on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivor benefits.

State Unemployment Credit

A tax credit offered to employers by the state, related to unemployment insurance payments.

FUTA Purposes

Relates to the Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.

Federal Income Tax

This is a tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.