How Can MNCs Preemptively Deflect the Enactment of Adverse Regulations

question 20

Multiple Choice

How can MNCs preemptively deflect the enactment of adverse regulations in a foreign country?

• A)An MNC can invest in or align itself with a domestic firm in the foreign country and thereby try to avoid the adverse regulation or the application of the adverse regulation because of the potential for an adverse effect on the domestic firm.
• B)An MNC can move its funds and its moveable assets out of the country before the adverse regulations are placed into effect.
• C)An MNC can buy insurance to protect it against adverse regulations put into effect after the MNC has made an investment in the foreign country.
• D)An MNC can employ high government officials in the country that will impose the adverse regulations and use their connections with those officials to defeat the regulations or arrange that the regulations not apply to the MNC.

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Definitions:

Acetylcholine

A neurotransmitter in the nervous system involved in muscle activation, memory, and learning.

Serotonin

A neurotransmitter associated with mood regulation, digestion, sleep, and other important physiological processes.

Epinephrine

A hormone and neurotransmitter also known as adrenaline; it increases heart rate, muscle strength, blood pressure, and sugar metabolism, and is used in medical scenarios to treat severe allergic reactions.

Neural Pathway

A network of neurons connected by synapses along which electrical impulses travel within the nervous system.