A/An ________ Would Be an Example of a Location-Specific Advantage

question 49

Multiple Choice

A/An ________ would be an example of a location-specific advantage for an MNE.

• A) patent
• B) economy of scale
• C) unique source of raw materials
• D) possession of proprietary information

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Definitions:

Pro-Rata Share

A portion of something that is divided among participants in proportion to their share, interest, or contribution.

Proportionate Consolidation Method

A method of accounting where a parent company includes its share of the assets, liabilities, income, and expenses of a joint venture or associate in its financial statements proportionate to its ownership interest.

Identifiable Net Assets Method

An accounting technique used to value a company by identifying and valuing its tangible and intangible assets separately from goodwill.

IFRS

International Financial Reporting Standards are globally accepted standards for accounting, aiming at bringing transparency, accountability, and efficiency to financial markets around the world.