Once a MNC Decides to Undertake a Foreign Project, It

question 17

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 above

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Definitions:

Agency Shop

A workplace where employees must pay union fees even if they are not union members, as long as a union is the recognized bargaining agent for the workplace.

Union Members

Individuals who belong to a labor union, which represents their interests in negotiations with employers over wages, benefits, and working conditions.

Production Union

A labor organization whose members are involved in the actual manufacturing or production process of goods.

NLRB Approval

Endorsement or sanction given by the National Labor Relations Board, an agency that enforces US labor law in relation to collective bargaining and unfair labor practices.