It Is Impossible for a Foreign Subsidiary to Develop a Local

question 45

True/False

It is impossible for a foreign subsidiary to develop a local identity because it seldom employs personnel from the country within which it operates.

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Definitions:

Slope

A measure of the steepness, incline, or grade of a straight line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Capital

Resources, such as funds, equipment, and buildings, that are used in the production of goods and services.

Labor

Refers to the human effort, both physical and mental, used in the production of goods and services.

Isocost Line

A graph that shows all combinations of capital and labor that can be purchased for a given total cost.