Management Contracts Are Used in International Dealings

question 89

Multiple Choice

Management contracts are used in international dealings

• A) as a way in which an MNC may contract with a foreign government or local firm to trade raw materials for certain resources belonging to the MNC.
• B) as a way in which an MNC can take total control of operations by either starting a business from scratch or acquiring a firm already established in the host country.
• C) when a corporation chooses to build a facility from scratch allowing it the freedom to design the plant, choose suppliers, and hire a workforce.
• D) when an MNC has a large amount of management talent available and chooses to use its personnel to assist a firm in a host country for a specified fee and period of time.
• E) when an MNC typically contracts for construction of operating facilities in exchange for a fee.

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Definitions:

Bachelor's Degree

A bachelor's degree is conferred by higher education institutions after a student completes a program of study that usually spans between three to seven years, varying by the institution and the chosen field of study.

For-Profit Corporations

Businesses that are operated with the goal of making profits for their shareholders, focusing on revenue generation as their primary objective.

Not-For-Profit Organizations

Organizations that operate for purposes other than generating profit, focusing on serving a public or mutual benefit instead of commercial or financial gains.

Federal or State Government

Organizational structures responsible for governing at either a national (federal) level or within individual states, overseeing and implementing laws, policies, and regulations.