Multinational Organizations Can Shop from Country to Country and Cut

question 46

Multiple Choice

Multinational organizations can shop from country to country and cut costs through:

• A) lower wage scales.
• B) lower indirect costs.
• C) less stringent regulations.
• D) lower taxes and tariffs.
• E) all of the these.

---

Definitions:

Economic Profit

The profit a business makes after deducting both its explicit and implicit costs, including opportunity costs.

Normal Rate of Return

The standard profit or return that is anticipated on an investment, considering the levels of risk and market conditions.

Computer Software Industry

The sector involved in the development, maintenance, and publication of software that offers different types of services or functions for computer users.

Computer Industry

Refers to the business sector involved in the development, manufacturing, and sale of computers, computer components, and software.