A Company's Operations Are Most Likely to Be Taken Over

question 26

Multiple Choice

A company's operations are most likely to be taken over by a host government when ________.

• A)the operations are relatively small and, thus, unlikely to incur the wrath of the company's home government
• B)the operations are substantial and have a widespread effect on the country because of the company's size
• C)the host country becomes involved in a regional war
• D)the firm produces discretionary rather than essential products

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Definitions:

Expansionary Monetary Policy

Government actions to increase the money supply in an effort to cut the cost of borrowing, which encourages business decision makers to make new investments, in turn stimulating employment and economic growth.

Money Supply

The total amount of monetary assets available in an economy at a specific time.

Cost of Borrowing

The total expenses that a borrower incurs to take out a loan, including interest payments, fees, and any other charges.

Cyclical Unemployment

People who are out of work because of a cyclical contraction in the economy.