The Threat of Expropriation Creates an Incentive for the Multinational

question 39

True/False

The threat of expropriation creates an incentive for the multinational firm to minimize inventory holdings and to bring in goods only as needed.

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Definitions:

Gainsharing

A program where employees receive financial rewards based on the performance improvement or cost-savings achievements of their work group.

Productivity

The measurement of efficiency of production, especially in terms of output per unit of input.

Cost Savings

The reduction in expenses achieved through efficiency improvements, negotiation, or eliminating wasteful practices.

Productivity Measurement

The process of determining the efficiency of production of goods or services, typically by comparing input resources to output.