Based on Observations of Firms That Have Successfully Invested Abroad

question 46

Multiple Choice

Based on observations of firms that have successfully invested abroad, we can conclude that one of the competitive advantages enjoyed by MNEs is:

• A) managerial expertise.
• B) financial strength.
• C) competitiveness of their home markets.
• D) All of the above are competitive advantages.

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Definitions:

Currency Risk

The risk of loss from fluctuations in foreign exchange rates when investing in foreign currencies or overseas assets.

Canadian Investors

Canadian investors refer to individuals or entities based in Canada that allocate capital in various financial vehicles such as stocks, bonds, and real estate, aiming for future financial returns.

Repatriated

Refers to the process of converting foreign currency into the currency of one's home country or returning assets from overseas to the home country.

Before-Tax Profit

The earnings of a company before income tax expense is deducted, indicating the gross profitability from operations and other activities.