Multinational Corporations May Take Several Forms

question 106

Multiple Choice

Multinational corporations may take several forms. An exporter could be described as

• A)a MNC that produces a product within its own borders, but sells in a foreign market.
• B)the least risky political arrangement.
• C)a MNC willing to commit itself to long-term foreign investment.
• D)More than one of the options.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Research and Development

Activities undertaken by a business to develop new products or improve existing ones, often involving innovation and technological advancement.

Capitalized

The process of recording an expenditure as an asset, rather than an expense, allowing a company to spread out the cost over time.

Natural Resource Depletion

The consumption of natural resources faster than they can be replenished, specifically accounted for in the valuation and depreciation of such resources by companies.