Which of the Following Is a Common Argument Against Allowing

question 26

Multiple Choice

Which of the following is a common argument against allowing a foreign firm to operate a business in a developing country?

• A) The foreign firm may gain control over national resources.
• B) Foreign productive expertise may outdistance domestic labor skills.
• C) The foreign firm may reduce domestic competition.
• D) Technology may be transferred from industrial countries to the developing countries.
• E) The foreign firm may reduce dependency on domestic imports.

---

Definitions:

Debt

An amount of money borrowed by one party from another, to be paid back with interest.

Solvency

The ability of a company to meet its long-term financial obligations and continue operations indefinitely.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods, to identify trends and growth patterns.

Audit

A systematic examination and evaluation of financial records or transactions of an entity to ensure accuracy, compliance with standards, or regulations.