A Foreign Branch Is

question 41

Multiple Choice

A foreign branch is

• A)an extension of the parent and is not an independently incorporated firm separate from the parent.
• B)an affiliate organization of the MNC that is independently incorporated in the foreign country, and one in which the U.S. MNC owns at least 10 percent of the voting equity stock.
• C)either a minority foreign subsidiary (an uncontrolled foreign corporation) or a controlled foreign corporation.
• D)both b and c

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Definitions:

Price Level

A measure of the average prices of goods and services in the economy.

Economic Conditions

The state of a country or region in terms of production, employment, and prices, and how these factors influence economic activities.

Aggregate Demand

Aggregate desire for goods and services within an economy at different price points, during a certain period.

Price Level

A measure of the average prices of goods and services in an economy at a specific time, often compared over time to assess inflation or deflation.