Headquarters Is More Likely to Rely on Subsidiary Management If

question 87

Multiple Choice

Headquarters is more likely to rely on subsidiary management if:

• A) subsidiary managers are from another country.
• B) conditions in the host country are very similar to those in the home country.
• C) the subsidiary is located far away from headquarters.
• D) the host country has similar institutions and politics to those in the home country.

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Definitions:

Short Run

A period in economics where at least one factor of production is fixed, limiting the ability to increase output.

Aggregate Demand

Aggregate demand is the total demand for all goods and services within an economy at a given overall price level and within a given time period.

Aggregate Supply

The sum total of products and services that corporate entities in an economic environment plan to market over a fixed period.

Expected Price Level

The anticipated average price of goods and services in the economy over a future period.