An Indirect Benefit to the MNC of Following a Worldwide

question 37

Multiple Choice

An indirect benefit to the MNC of following a worldwide code of ethics is:

• A) it allows them to receive special tax breaks in less developed countries.
• B) it puts them at a competitive advantage in foreign markets.
• C) the worldwide credibility associated with maintaining such standards can increase global demand for the MNC's products.
• D) A and B.

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Definitions:

Comparative Advantage

an economic principle that posits a country or entity can produce a particular good or service at a lower opportunity cost than its trading partners, leading to beneficial trade.

Medium Of Exchange

Anything that facilitates trade by being generally accepted by all parties in payment for goods or services.

Facilitates Trade

Actions or policies designed to make trade between countries or parties easier, typically through reducing barriers such as tariffs and quotas.

Barter

The direct exchange of one product for another without using money.