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Multinational Firms Should Invest Only If They Can Earn a Risk-Adjusted

question 48

True/False

Multinational firms should invest only if they can earn a risk-adjusted return greater than locally based competitors can earn on the same project.


Definitions:

Cognitive Dissonance

The uncomfortable feeling people experience when they have two thoughts or cognitions conflict with one another.

Attitude Polarization

The phenomenon by which an individual's stance on an issue becomes more extreme after considering evidence or arguments.

Show Attitude

The demonstration of one's feelings, beliefs, or disposition through verbal and non-verbal forms of expression.

Biased Manner

A way of acting or making decisions that is influenced by prejudices or partiality, rather than being fair or impartial.

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