A Foreign Subsidiary Is

question 16

Multiple Choice

A foreign subsidiary 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)b and c

Understand the historical and theoretical background of different economic systems.

Recognize the significance of competition and the invisible hand in the functioning of economies.

Grasp the concept of economic adjustments through taxes and regulation.

Understand the concepts of full employment and full production within an economy.

---

Definitions:

Self-enhancement

The psychological process of improving one's self-image by focusing on strengths and achievements while minimizing weaknesses and failures.

Self-presentation

The process of controlling or influencing the perceptions others have of you.

External Attribution

The process of attributing one's own behavior or the behavior of others to external factors or influences.

External Attributions

The process of explaining one's own or others' behavior as caused by external factors, circumstances, or the situation.