Once a MNC Decides to Undertake a Foreign Project,it Can

question 90

Multiple Choice

Once a MNC decides to undertake a foreign project,it can take various measures to minimize its exposure to political risk.These include

• A)the MNC can form a joint venture with a local company.
• B)the MNC may also consider forming a consortium of international companies to undertake the foreign project.
• C)the MNC can use local debt to finance the foreign project.
• D)the MNC may purchase insurance against the hazard of political risk.
• E)all of the options

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Definitions:

Lowest Price

The minimum cost at which a good or service is offered in the market, representing the least amount a seller is willing to accept.

Long Run

refers to a period of time in which all factors of production and costs can be fully adjusted, including all forms of investment.

Short Run

A timeframe in economic terms where firms can adjust production levels only by changing variable inputs, with fixed inputs remaining constant.

Long Run

In economics, a period during which all factors of production and costs are variable, allowing for full industry adjustment to change.