Opening Your Own Subsidiary in the Host Country May Be

question 46

Multiple Choice

Opening your own subsidiary in the host country may be better than contracting with an outside firm in the host country if it is crucial for you to ________.

• A) produce gains in efficiency, productivity, and quality
• B) keep control of proprietary technology and processes
• C) minimize jobs losses in the home country
• D) market your products in the host country

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Definitions:

Expansionary Policy

A macroeconomic strategy used by governments or central banks to stimulate the economy by increasing money supply or reducing taxes.

Fiscal Policy

Government strategies to influence economic conditions through spending and taxation decisions to manage economic growth, inflation, and unemployment.

Anticipated Policy

A governmental or organizational policy that is expected to be implemented in the future, often already influencing current behaviors and decisions.

Price Level

A measure of the average prices of goods and services in the economy at a given time.