To Use Foreign Factors of Production, an MNC Should

question 25

Multiple Choice

To use foreign factors of production, an MNC should:

• A) establish a subsidiary in a new market that can sell products produced elsewhere.
• B) establish a subsidiary in a market that has relatively low costs of labor or land.
• C) establish a subsidiary in a market where raw materials are cheap and accessible.
• D) participate in a joint venture in order to learn about a production process or other operations.

---

Definitions:

Manufacturer

An entity or enterprise that makes goods through a process involving raw materials, components, or assemblies, usually on a large scale with machinery.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.