Transfer Risk Refers to the Risk Which Arises from the Uncertainty

question 3

Multiple Choice

Transfer risk refers to the risk which arises from the uncertainty about:

• A) the host's country's policies affecting the local operations of an MNC.
• B) the host's country's policy regarding ownership and control of local operations.
• C) cross-border flows of capital, payment, know-how, and the like.
• D) None of these.

Understand the concept of price discrimination and its applications.

Comprehend the downward sloping demand curve and its implications.

Identify strategies such as "damaged goods," "metering," and "bundling" used by firms to maximize profits.

Distinguish between direct and indirect price discrimination techniques.

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