If an MNC Sells a Product in a Foreign Country

question 34

Multiple Choice

If an MNC sells a product in a foreign country and imports partially manufactured components needed for production to that country from the U.S., then the local economy's inflation will have:

• A) a more pronounced impact on revenues than on costs.
• B) a less pronounced impact on revenues than on costs.
• C) the same impact on revenues as on costs.
• D) none of the above

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