Because of the Weak Systems of Property Rights in Many

question 11

Multiple Choice

Because of the weak systems of property rights in many developing and transition economies,the financial system is unable to use collateral effectively worsening the ________ problem.

• A)adverse selection
• B)moral hazard
• C)principal/agent
• D)diversification

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Definitions:

HCNs' Behaviour

The actions and reactions of Host Country Nationals, referring to the local employees in a multinational company's subsidiary.

Cross-cultural Adjustment

The process through which individuals adapt to and become more comfortable with the norms, values, and behaviors of a culture different from their own.

Cultural Knowledge

Understanding of the values, beliefs, practices, and social norms of different cultures, critical for effective cross-cultural communication.

Global Strategy

A strategy that involves planning and conducting transactions across national borders to meet the objectives of individuals and organizations on a global scale.