Which of the Following Best Exemplifies How Informal Institutions Govern

question 21

Multiple Choice

Which of the following best exemplifies how informal institutions govern MNEs?

• A) The US has few laws limiting US firms from creating subsidiaries overseas, but there is often a vocal backlash from the public over domestic job loss.
• B) MNEs coming into the US have relatively few restrictions, as long as they do not practice illegal dumping or price setting.
• C) MNEs based in the US must advance quickly into foreign markets to beat competitors and take care of opportunities, but these moves are often slowed by legal regulations and entry barriers.
• D) The laws governing MNEs based in the US are always changing.

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Definitions:

Psychotic Behaviors

Manifestations of severe mental disorders involving loss of contact with reality, delusions, and hallucinations.

Offering Self

The act of providing one’s attention, presence, or support to others without expecting anything in return.

Traumatic Life Experiences

Events or situations that are overwhelmingly stressful and can lead to long-term psychological impact.

Seek Clarification

The act of asking for further information or details to understand something more clearly.