Why Is There Generally More Variation in Organizational Form in Foreign

question 34

Multiple Choice

Why is there generally more variation in organizational form in foreign projects compared to domestic projects?

• A)Firms are freer to experiment with organizational forms in dealing with foreign projects than they are with domestic projects.
• B)Since most international projects are in the form of joint ventures,the joint venture agreements dictate the organizational form of the foreign project.
• C)Host-country business regulations and tax laws in both home-countries and host-countries result in more variation in the organization of foreign projects.
• D)Host-countries generally dictate that the organizational form of the foreign project has to be different from the organizational form of the firm that is operating the foreign project.

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Definitions:

Consumption

The process by which goods and services are used up by consumers, representing the end phase of the economic cycle.

Income

Financial gains, customarily on a constant basis, from vocational activities or investments.

Interest Rate

The percentage charged on a sum of money borrowed or earned on deposited funds over a period of time.

Utility Function

A representation in economics that shows the relationship between the utility (satisfaction) individuals receive from consuming goods and services and different consumption bundles.