An MNC Considers Direct Foreign Investment in Germany

question 34

Multiple Choice

An MNC considers direct foreign investment in Germany. It is mainly concerned with the subsidiary's ability to generate sufficient sales there. The country risk characteristic that would best address this concern is:​

• A)the host government's tax rates charged on remitted earnings.
• B)the possibility of blocked funds.
• C)the state of the economy in Germany.
• D)the possibility of a withholding tax imposed by the German government.

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Definitions:

Nativist Approach

A psychological theory proposing that specific abilities or talents are innate or biologically pre-programmed from birth.

Language Acquisition

The process by which humans acquire the ability to perceive, comprehend, and produce language through both innate mechanisms and learned elements.

Innate Capacity

A natural ability or talent that an individual is born with, not acquired through learning.

Relativist

A philosophical stance asserting that points of view have no absolute truth or validity, having only relative, subjective value according to differences in perception and consideration.