To Make an MNC's Operations Coincide with Its Own Goal

question 54

Multiple Choice

To make an MNC's operations coincide with its own goal, a host government could do all of the following, except:

• A) require the use of local employees for managerial positions.
• B) require social facilities.
• C) subsidize the MNC.
• D) require environmental controls.

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Definitions:

Income Inequality

The unequal distribution of income and wealth across different groups within a society, often leading to social and economic disparities.

Perverse Incentives

Incentives that have unintended and undesirable effects that are contrary to the intentions behind their creation.

Before-Tax Income

The total personal income earned by an individual or household before any taxes have been deducted.

High-Income Families

Households with an income significantly above the average, often associated with greater purchasing power and wealth accumulation.