A Firm That Has Operations in More Than One Country

question 45

True/False

A firm that has operations in more than one country is known as a multinational corporation.

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Definitions:

World Price Level

The average of prices for goods and services across different countries, adjusted for exchange rate differences, reflecting the global cost of living.

Diagram

A simplified drawing showing the appearance, structure, or workings of something, often used for explanatory purposes.

Nontariff Barrier

Any restriction, other than tariffs, that restricts international trade, such as quotas, embargoes, or regulatory standards.

Export Subsidy

A government policy that provides financial assistance to domestic firms for exporting goods, aimed at increasing the competitiveness of domestic products in foreign markets.