Suppose That Regardless of the Amount of Production, a Subsidiary's

question 40

Multiple Choice

Suppose that regardless of the amount of production, a subsidiary's per unit costs are always less than a local firm's.If there are significant tariffs, in this case ________________is likely to be the lowest-cost method of supplying goods abroad.

• A) licensing
• B) subsidiary production
• C) direct exporting
• D) vertical integration

---

Definitions:

(+)-glyceraldehyde

An enantiomer of glyceraldehyde, denoted as having a positive optical rotation; it is a simple sugar and plays a role in several metabolic pathways.

E.e.

Enantiomeric excess, a measure of the purity of an enantiomer in a mixture, indicating the percentage difference between two enantiomers' concentrations.

Asymmetric Carbon

A carbon atom bonded to four different groups, creating a chiral center.

Dextro-

Prefix indicating the right-handed (clockwise) configuration of a chiral molecule, often used in stereochemistry.