The Price Paid by an Importing or Buying Unit of a Multinational

question 13

Multiple Choice

The price paid by an importing or buying unit of a multinational firm to an exporting unit of the same firm is known as

• A)marginal price.
• B)international transfer price.
• C)transaction risk.
• D)fixed price.

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Definitions:

GDP

Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country in a specified period.

Per Capita Real GDP

A measure of the average economic output per person, adjusted for inflation, in a given country.

GDP Deflator

An indicator for the pricing levels of all new, domestically produced, consumable goods and services within an economy.

Population

The total number of people living in a specific area or country at a given time.