Which of the Following Is Not a Common Activity of MNCs

question 68

Multiple Choice

Which of the following is not a common activity of MNCs?

• A) owning and controlling foreign assets
• B) buying resources in various countries
• C) creating goods in a variety of countries
• D) establishing foreign exchange rates

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Definitions:

Trade Surplus

A situation where a country exports more goods and services than it imports, leading to a positive balance of trade.

Exporting

Producing goods in one country and selling them in another.

Joint Venture

Formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess their purchasing power equivalency.