The Most Effective Long-Range Solution to a Situation Where a Foreign

question 47

Multiple Choice

The most effective long-range solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is

• A) joint ventures.
• B) licensing.
• C) expanding the investment base.
• D) planned domestication.
• E) political payoffs.

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Definitions:

Poorest

Referring to the individuals or groups with the lowest income and wealth levels in a society.

Soft Loans

Loans that are offered with more favorable terms than market loans, typically including lower interest rates and longer repayment periods.

Developing Countries

Nations with a lower level of industrialization, lower standard of living, and lower Human Development Index compared to developed countries.

International Development Association

A part of the World Bank that helps the world’s poorest countries by providing loans and grants for projects and programs that boost economic growth and improve living conditions.