Multinational Enterprises May Provide Benefits to Their Source (Home) Countries

question 13

Multiple Choice

Multinational enterprises may provide benefits to their source (home) countries because they may:

• A) Secure raw materials for the source country
• B) Shift source country technology overseas via licensing
• C) Export products which reflect source-country comparative disadvantage
• D) Result in lower wages for source-country workers

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Definitions:

Long-Run Equilibrium

A state in which supply and demand are balanced over the long term, typically characterized by full employment of resources and stable prices.

Price Level

An index that measures the average prices of goods and services in an economy at a given time.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues over a specified period, leading to a need for borrowing or using saved reserves.

Energy Prices

The cost of purchasing energy sources such as oil, gas, coal, and electricity, which can fluctuate based on demand, supply, geopolitical stability, and environmental policies.