Provide a Concise Statement on the Relationship Between Multinational Corporation

question 13

Essay

Provide a concise statement on the relationship between multinational corporation investment and economic activity in developing countries with respect to:
(a) the three gaps,
(b) comparative advantage,
(c) the debt crisis,
(d) scale economies, and
(e) pattern of consumption.

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Definitions:

Currency

A system of money in general use in a particular country or economic context, facilitating the transfer of goods and services.

London Interbank Offer Rate

An interest rate average calculated from estimates submitted by leading banks in London that indicates the rate at which banks lend to one another.

Eurodollar Loans

Financial loans that are denominated in U.S. dollars but are held in banks outside the United States.

Overnight

In financial terms, this refers to transactions that are settled or occur from one business day to the next.