Exploitative MNEs Are Often Able to Extract Substantial Concessions from Host

question 29

Multiple Choice

Exploitative MNEs are often able to extract substantial concessions from host country governments because host countries are eager to secure which of the following in connection with new investments made by MNEs:

• A) access to the MNEs' sources of international commercial credit.
• B) employment and increased tax bases.
• C) business intelligence pertaining to the nature of concessions being offered by other host countries.
• D) complex financial instruments developed in first-world financial markets.

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Definitions:

Four-Firm Concentration Ratio

A measure of market concentration that quantifies the market share of the four largest firms within an industry, often used to assess the competitiveness of a market.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to price-taking behavior.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to competitive practices based on product differentiation.

Market Structures

Refers to the organization and characteristics of different markets, varying by the number of firms, type of products, and level of competition.