A Form of Multinational Corporation (MNC) That Exposes the Firm

question 91

Multiple Choice

A form of multinational corporation (MNC) that exposes the firm to the least amount of political risk, and is therefore the preferred arrangement by both business and foreign governments, is called

• A) an exporter.
• B) a licensing agreement.
• C) a joint venture.
• D) a fully owned foreign subsidiary.

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Definitions:

Arithmetic Operations

Fundamental arithmetic processes comprising adding, subtracting, multiplying, and dividing.

Exponential Decay

A process in which the value of a quantity decreases at a rate proportional to its current value.

Compound Interest

The addition of interest to the principal sum of a loan or deposit, where the interest that has been added also earns interest.

Exponential Growth

Exponential growth describes a process that increases in quantity at a consistent rate relative to its current value, often seen in populations or investments.