Other Things Being Equal, a Foreign Subsidiary in China Would

question 43

Multiple Choice

Other things being equal, a foreign subsidiary in China would more likely be divested by the U.S. parent if new information caused the parent to suddenly anticipate that:

• A)the Chinese yuan would depreciate in the future.
• B)the Chinese yuan would appreciate in the future.
• C)the Chinese yuan would remain somewhat stable in the future.
• D)none of the above; the value of the Chinese yuan has no impact on the feasibility of a divestiture.

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Definitions:

Directed Thinking

Thinking aimed at a particular goal.

Analogical Representation

An idea that shares some of the actual characteristics of the object it represents.

Automaticity

The ability to do a task without paying attention to it.

Mental Rotation

The cognitive ability to mentally turn or rotate three-dimensional objects to interpret and predict their appearance at different angles.