What Are Implicit Transaction Costs That MNCs Incur in Dealing

question 29

Multiple Choice

What are implicit transaction costs that MNCs incur in dealing with their cash balances?

• A)Implicit transaction costs are costs of dealing with a firm's cash balances that are not disclosed to the firm until after the transaction is completed.
• B)Implicit transaction costs incurred in dealing with an MNC's cash balance involve costs associated with making internal decisions about the firm's cash balance.
• C)Implicit transaction costs are costs of arranging the firm's cash balances that the firm will not have to pay until a later time.
• D)Implicit transaction costs are costs that are charged to a firm in connection with managing its cash balances that will be deducted from the firm's cash balance rather than being billed to the firm.

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Definitions:

World Systems Theory

A macro-sociological perspective that analyzes societies in terms of the global economic system, dividing the world into core, periphery, and semi-periphery zones.

Peripheral Countries

Nations that are less developed than the semi-periphery and core countries, often exploited for their resources by more economically dominant nations.

World Poverty

A global issue characterized by the lack of basic resources, services, and opportunities necessary for people to live a healthy and productive life, disproportionately affecting developing countries.

Causes

Factors or conditions that bring about an effect or influence the occurrence of an event, action, or condition.