Management Contracts Are Used in International Dealings

question 89

Multiple Choice

Management contracts are used in international dealings

• A) as a way in which an MNC may contract with a foreign government or local firm to trade raw materials for certain resources belonging to the MNC.
• B) as a way in which an MNC can take total control of operations by either starting a business from scratch or acquiring a firm already established in the host country.
• C) when a corporation chooses to build a facility from scratch allowing it the freedom to design the plant, choose suppliers, and hire a workforce.
• D) when an MNC has a large amount of management talent available and chooses to use its personnel to assist a firm in a host country for a specified fee and period of time.
• E) when an MNC typically contracts for construction of operating facilities in exchange for a fee.

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Definitions:

API GL-3

Designates a classification of gear lubricants by the American Petroleum Institute for moderate conditions, often used in non-hypoid axles and transmissions not subject to extreme pressures.

Heavy Truck Differential Carriers

Components designed to house the differential assembly in heavy trucks, aiding in the distribution of engine power to the wheels, allowing for different rotations.

Differential Carrier

The housing that contains the differential gear set, allowing for different wheel speeds, particularly important for turning.

Crown And Pinion Gearset

A set of gears found in the differential of a vehicle, allowing the drive shaft to transmit power to the axles at an angle.