MNCs Have Moved Certain Production Activities Overseas to Capitalize On

question 35

Multiple Choice

MNCs have moved certain production activities overseas to capitalize on:

• A)Increasing costs
• B)Cheap labor
• C)Larger markets
• D)Higher purchasing power

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Definitions:

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and factory overhead.

Tax Rate

The rate at which income is taxed for a person or business entity.

Net Income

Net income refers to the total profit of a company after all expenses and taxes have been subtracted from total revenue.

CCA Tax Shield

A tax benefit derived from the depreciation expense allowed on tangible property for tax purposes, reducing taxable income.