Which of the Following Provides a Good Explanation of Why

question 47

Multiple Choice

Which of the following provides a good explanation of why multinational firms exist?

• A)Location factors that favor exporting over foreign production
• B)The need to shift financial capital between countries
• C)Internalization advantages that favor direct investment over contracting with independent foreign firms
• D)Firms lack inherent knowledge of foreign laws, procedures, and practices.

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Definitions:

Reciprocal Level

A mutual relationship or arrangement whereby two parties provide or exchange similar benefits or actions.

Empathic Response

An emotional understanding and sharing of another person's feelings or experiences.

Professional Jargon

Language or terminology that is specifically used within a certain profession or by experts in a particular field, which may not be easily understood by outsiders.

Repetitive Speech Patterns

This term describes the repetition of phrases, words, or themes in speech, often seen in various communication disorders or as a stylistic device.