Which of the Following Statements Is True of the Impact

question 47

Multiple Choice

Which of the following statements is true of the impact of domestic and international political developments on multinational companies?

• A) Multinational companies are well protected from the hazards that originate directly from variation and unpredictability in political and governance systems around the world.
• B) The state and its various institutions and agencies protect multinational companies by refraining from making policy shifts in taxation or regulation.
• C) As government policies change, it is imperative that multinational companies be willing and able to adjust their strategies and practices to accommodate new perspectives.
• D) A majority of geographic areas and regions carry less political risk than they did in the past because governments are more stable.

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Definitions:

Political Corruption

The misuse of public power by government officials for private gain, often compromising the interests and rights of citizens.

Institutional Problem

Challenges and issues within established organizations that hinder their effectiveness or goals.

DVCs

Digital Video Cameras; devices used for recording moving images digitally, but here as an acronym, it could refer to Direct Variable Costs, the costs that vary directly with the level of output.

Vicious Circle

A complex chain of negative events that reinforce each other, often leading to a deteriorating situation.