The Most Effective Solution to a Situation Where a Foreign

question 58

Multiple Choice

The most effective 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.

---

Definitions:

Variable Overhead

Costs of operation that fluctuate with production volume, such as utilities for machinery.

Direct Labor-Hours

The cumulative amount of time employees spend specifically on the creation of goods or services.

Variable Overhead

Costs that fluctuate with production volume, such as utilities or indirect materials, which are not directly tied to any single product.

Direct Materials

Basic substances that can be directly linked to the manufacture of particular products or services.