How Can an MNE Overcome Its Inherent Disadvantages

question 18

Multiple Choice

How can an MNE overcome its inherent disadvantages?

• A)By borrowing funds from the host country rather than transferring funds from the parent firm
• B)By producing more than two products in which it has comparative advantage
• C)By expanding its operation in more than two host countries
• D)By owning one or more assets that are not owned by its local competitors in the host country

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Definitions:

Acing

Excelling in a task or challenge with remarkable skill or ease, often used in the context of achieving high marks or performance.

Studying

The act of applying one's mind purposefully to the acquisition of knowledge or understanding of a subject.

Entity Theorists

Those who believe that traits are fixed, stable things (entities) and thus people should not be expected to change.

Incremental Theorists

Those who believe that traits are subject to change and improvement.