A Subsidiary Is Most Likely to Receive Favorable Treatment from an MNE

question 49

Multiple Choice

A subsidiary is most likely to receive favorable treatment from an MNE if it is located in a country with ________.

• A) lower corporate income-tax rates
• B) significant restrictions on profit repatriation
• C) low tariffs for the product in question
• D) political instability

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Definitions:

Emotional Standstill

A state where an individual feels emotionally stuck or unable to progress beyond certain feelings.

Economic Success

The achievement of financial prosperity, growth, or stability in an individual or organizational context.

Business Approach

A method or strategy adopted by a company or organization to achieve its objectives and maximize success.

Logical Incrementalism

A strategy-making process that involves making decisions step-by-step based on logic and orderly sequencing.