MNEs Situated in Countries with Small Illiquid and Segmented Markets

question 49

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.

---

Definitions:

Complementary Resources

Goods or services that enhance the value of another good or service when used in conjunction with it.

Immigration

The process by which individuals move from one country to live permanently in another.

Wage Rate

The standard amount of compensation given to employees for their labor, typically expressed per hour, day, or piece produced.

Production Costs

These are the expenses associated with manufacturing a product, including labor, materials, and overhead costs.