All of the Following Are Ways That a Multinational Corporation

question 14

Multiple Choice

All of the following are ways that a multinational corporation can minimize the impact of political risk EXCEPT:

• A)using local financing.
• B)purchasing country risk insurance.
• C)paying off government officials.
• D)All of these are ways that a multinational corporation can minimize the impact of political risk.

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Definitions:

Ending Direct Materials

Ending Direct Materials refers to the value of raw materials that are still available for use in production at the end of an accounting period.

Required Production

Required production is the quantity of goods a company needs to produce in a given period to meet customer demand and maintain inventory levels.

Direct Labor

Labor costs directly associated with the manufacture of products or provision of services, such as wages for assembly line workers.

Manufacturing Overhead

Manufacturing overhead includes all indirect costs associated with the production process, such as utilities, maintenance, and salaries of non-direct labor employees.