A Bank May Establish a Multinational Operation for the Reason

question 74

Multiple Choice

A bank may establish a multinational operation for the reason of low marginal costs.The underlying rationale being that

• A)banks follow their multinational customers abroad to prevent the erosion of their clientele to foreign banks seeking to service the multinational's foreign subsidiaries.
• B)multinational banking operations help a bank prevent the erosion of its traveler's check,tourist,and foreign business markets from foreign bank competition.
• C)managerial and marketing knowledge developed at home can be used abroad with low marginal costs.
• D)the foreign bank subsidiary can draw on the parent bank's knowledge of personal contacts and credit investigations for use in that foreign market.

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Definitions:

West Coast Salmon

Salmon species found along the Pacific Coast of North America, facing challenges from overfishing, habitat loss, and climate change.

Sea Lamprey

An ancient, jawless fish known for its parasitic feeding habits, attaching to and feeding on the blood of other fish.

Overharvesting

The excessive harvesting of natural resources, leading to depletion or significant reduction in population densities.

Bycatch Problem

The issue of catching unintended species while fishing, leading to wasteful death of non-target marine life.