Multinational Corporations

question 16

Multiple Choice

Multinational corporations

• A) give top priority to the nation in which their head office is located.
• B) no longer need a geographical center.
• C) depend more and more on the economy of one nation.
• D) maintain preferential treatment for local employees over any global strategy.

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Definitions:

Contract Rate

The agreed-upon rate specified in a contract that determines the amount of interest to be accrued on financial instruments such as loans or bonds.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock.

Interest Paid

The amount paid by a borrower to a lender for the privilege of borrowing money, typically expressed as an annual percentage rate.

Effective Interest Rate

The true rate of simple interest.