Intel Is Attempting to Do Business in Brazil, but the Brazilian

question 13

Multiple Choice

Intel is attempting to do business in Brazil, but the Brazilian government purposely delays granting Intel the necessary licenses and permissions required to do business in the country. Which of the following best describes this situation?

• A) creeping expropriation
• B) nationalization
• C) barriers to repatriation
• D) confiscation

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Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm operates on a larger scale due to inefficiencies that arise.

Long-Run Average Cost

The per-unit cost of production in the long run, where all inputs are variable and economies of scale have been reached.

Marginal Cost

The cost incurred in producing one additional unit of a product or service.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, representing the per-unit cost of production.