Which of the Following Is True Concerning Multinational Corporations

question 27

Multiple Choice

Which of the following is true concerning multinational corporations?

• A) They replace free trade blocs as the key institution in the development of the global economy.
• B) They design systems that utilize highly skilled, highly paid labor resources.
• C) They possess the ability to influence the political affairs in countries where they operate.
• D) They expand trade among cities within country borders while blocking international trade across borders.

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Definitions:

Special-Interest Effect

A situation where policy decisions primarily benefit a small group, often at the expense of the larger public.

Spillover Costs

Costs incurred by third parties as a result of economic activities that are not reflected in market transactions.

Concentrated Benefits

Advantages that are significantly focused on a small group rather than being distributed widely across many individuals.

Diffuse Costs

Costs that are spread out over many consumers or taxpayers, making them hard to identify and attribute to any single action.