If Two Countries Had Completely Free Trade with Each Other,why

question 48

Multiple Choice

If two countries had completely free trade with each other,why might a multinational corporation still be created such that it holds factories in both countries?

• A)The multinational corporation wants to gain access to markets to which it would not otherwise have access.
• B)The multinational corporation does not trust that the drop in protectionist policies will be permanent.
• C)Protections against input goods make the costs of production too high.
• D)The multinational corporation wants access to cheaper labor in one of the countries.
• E)The other country prevents the export of particular,key input goods.

---

Definitions:

Charles De Gaulle

A French general and statesman who led the Free French Forces during World War II and later became President of France, founding the Fifth Republic.

French Right

Political groups or parties in France that uphold conservative, traditional, or right-wing ideologies and policies.

United Nations

An international organization founded in 1945 composed of member states, aimed at promoting peace, security, and cooperation among countries.