Hudson Manufacturing Is an MNE Based in the U

question 12

Multiple Choice

Hudson Manufacturing is an MNE based in the U.S.with operations in Asia.The firm is considering expansion into the European Union.Which of the following questions is most relevant to the decision?

• A) What is the primary language of most workers?
• B) Which country has the best production location?
• C) Which currency has the most favorable value of the euro?
• D) Which country has the lowest tariffs for manufactured products?

---

Definitions:

Downward-Sloping Demand

A common economic principle where the quantity demanded of a good or service decreases as its price increases.

Quantity Tax

A tax that is levied on the quantity of a good produced or sold, rather than its price.

Marginal Cost

The rise in overall expenses resulting from the production of an extra unit of a product or service.

Elasticity of Demand

The degree to which the quantity demanded of a good or service varies with its price. Generally, a high elasticity indicates that demand is sensitive to price changes.