A Firm Becomes a Multinational Enterprise When

question 63

Multiple Choice

A firm becomes a multinational enterprise when

• A)it lists its stock on a stock exchange other than the one in its home country.
• B)it undertakes foreign direct investment.
• C)it undertakes foreign portfolio investment.
• D)Any of the above.

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Definitions:

Representativeness Bias

A cognitive bias in decision-making where individuals judge probabilities or make judgments based on how much one thing resembles another, often leading to errors in assessment.

Conjunction Fallacy

A logical error where people wrongly assume that specific conditions are more probable than a single general one.

Framing Error

A cognitive bias where information is presented or perceived in a way that influences judgment and decision-making, potentially leading to incorrect conclusions or actions.

Representativeness Heuristic

A cognitive bias in decision-making where the likelihood of an event is estimated based on how much it resembles existing stereotypes or patterns.