An MNC Considers Direct Foreign Investment in Germany

question 40

Multiple Choice

An MNC considers direct foreign investment in Germany. It is mainly concerned with the subsidiary's ability to generate sufficient sales there. The country risk characteristic that would best address this concern is:

• A) the host government's tax rates charged on remitted earnings.
• B) the possibility of blocked funds.
• C) the state of the economy in Germany.
• D) the possibility of a withholding tax imposed by the German government.

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Definitions:

Working Memory

A cognitive system responsible for temporarily holding information available for processing tasks such as reasoning, learning, and comprehension.

Infant Attention

The focus and concentration an infant can apply to a task or object, indicating early cognitive development.

Preferential Looking

A research method used to study visual attention and preference, especially in infants, by measuring their gaze direction and duration towards different stimuli.

Habituation

The process by which an organism becomes accustomed to a stimulus and therefore responds less over time.