All of the Following Are Criticisms of Multinational Corporations EXCEPT

question 80

Multiple Choice

All of the following are criticisms of multinational corporations EXCEPT that they ________.

• A) begin their foreign operations by purchasing existing firms
• B) increase demand for luxury goods in host countries
• C) stimulate too much demand for scarce resources
• D) concentrate their R&D in host countries

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Definitions:

Expansionary Gap

A situation in which the actual output in an economy exceeds the output it would produce at full employment, leading to inflationary pressures.

Potential Output

The maximum level of output an economy can achieve when utilizing its resources fully without causing inflation.

SRAS Curve

The Short-Run Aggregate Supply curve, which shows the relationship between the price levels in an economy and the quantity of goods and services that producers are willing to supply in the short term.

Passive Approach

An investment strategy or management style where decisions are minimal in an effort to mimic the returns of a particular market or index.