According to the Text, MNCs Can

question 55

Multiple Choice

According to the text, MNCs can:

• A) use only debt financing in foreign countries to support foreign subsidiaries.
• B) use only equity financing in foreign countries to support foreign subsidiaries.
• C) use only parent financing in foreign countries to support foreign subsidiaries.
• D) none of the above

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas simultaneously.

Effort Justification

A phenomenon in which individuals attribute greater value to outcomes they had to put effort into achieving, often to reduce cognitive dissonance.

Ingratiation Theory

A psychological theory that explores how people attempt to make themselves appear more likable to others, often through flattery or other strategic behaviors.

Self-Serving Bias

The tendency to attribute positive outcomes to internal factors and negative ones to external factors, thereby protecting self-esteem.