The Two Sets of Pressures That Multinational Enterprises (MNEs)confront Are

question 34

Multiple Choice

The two sets of pressures that multinational enterprises (MNEs) confront are _____.

• A) formal institutions and informal institutions
• B) cost reduction and local responsiveness
• C) liability of foreignness and investment risk
• D) explicit knowledge and tacit knowledge

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Definitions:

Normal Profits

The level of profit that is necessary for a company to remain competitive in the market, often seen as the minimum acceptable return.

Short Run

Refers to a period in economics where certain inputs or resources are fixed and cannot be changed, contrasting with the long run where all factors are variable.

Long Run

A period in which all factors of production and costs are variable, allowing for adjustment to changes in the market or economy.

Economic Profit

A calculation of profitability that takes into account both the direct costs and opportunity costs of pursuing a particular course of action.