Which of the Following Is Not a Reason for a Multinational

question 21

Multiple Choice

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

• A) acquire knowledge
• B) be closer to its customers
• C) be closer to its competitors
• D) minimize foreign direct investment risk

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Definitions:

Cognitive Processes

The mental actions or operations that support learning, understanding, and decision-making.

Precise Predictions

Specific forecasts made about the outcomes of scientific experiments or observations.

Stimulus-Response Models

A framework in behavioral psychology where a specific stimulus leads to a particular response, emphasizing the predictable link between stimuli and reactions.

Expectancy-Value Theory

A psychological theory that explains how the motivation to engage in a behavior is influenced by the individual's expectation of success and the value they place on the success.