The Host Country's Balance-Of-Payments Problem Tends to Worsen When Foreign

question 43

Multiple Choice

The host country's balance-of-payments problem tends to worsen when foreign firms:

• A)invest solely in capital-intensive industries.
• B)repatriate their profits to the headquarters from the host country.
• C)acquire the foreign operations in order to diversify corporate investment holdings.
• D)refuse to share technological expertise with the host country.
• E)export all products to other countries.

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Definitions:

Peer Pressure

The pressure from a peer group that motivates individuals to modify their attitudes, values, or actions so that they align with the standards of the group.

Potential Productivity

The maximum output a person or system can produce under ideal conditions, often influenced by resources, skills, and environmental factors.

Social Psychologist

A professional who studies how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Bureaucracies

Organized administrative systems governed by a set of formal rules and procedures, often employed by large organizations or governments.