MNCs Can Take a Wide Variety of Strategies to Minimize

question 74

Multiple Choice

MNCs can take a wide variety of strategies to minimize their chances of expropriation.Those strategies do not include:

• A)bringing in local partners
• B)avoiding countries that have experienced a terrorist incident
• C)limiting the use of high technology so that if the firm is expropriated, the country cannot duplicate the technology
• D)acquiring an affiliate that depends on the parent company for key areas of the operation

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Definitions:

Total Allowable Catch

Refers to the maximum quantity of a particular fish species that can be caught over a specified period, used in fisheries management to sustain fish populations.

Economic Efficiency

Economic efficiency occurs when a system is able to maximize output with given resources and technology, minimizing waste and inefficiencies.

Individual Transferable Quotas

Regulatory tools in environmental management, granting individuals or companies the right to catch a certain amount of fish or pollute up to a certain limit, which can be traded.

ITQs

Individual Transferable Quotas, a system used in fisheries management that allocates a certain quantity of fish that can be caught by each fisherman or company.