MNEs Situated in Countries with Small Illiquid and Segmented Markets

question 48

Multiple Choice

MNEs situated in countries with small illiquid and segmented markets are most like:

• A) small domestic U.S. firms in that they must rely on internally generated funds and bank borrowing.
• B) large U.S. MNEs in that they are all MNEs and have worldwide markets and sources of financing.
• C) small domestic U.S. firms in that they have a strong niche market in the U.S.
• D) None of the above is true.

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Definitions:

Promissory Estoppel

A legal doctrine that prevents a party from withdrawing a promise made to another party if the latter has relied upon that promise to their detriment.

Oral Contracts

Agreements between parties that are spoken rather than written but are still legally binding.

Real Estate Mortgage

A legal agreement where real property is used as collateral for a loan.

Statute of Frauds

A legal principle requiring certain types of contracts to be executed in writing to be enforceable.