What Is the International Business Environment Most Conducive to the Creation

question 20

Multiple Choice

What is the international business environment most conducive to the creation of wealth by MNCs?

• A)rapidly changing conditions so that no one government can exercise control over an MNC
• B)countries being divided into rival trading blocs so that MNCs can take advantage of bargaining
• C)stable international security so investments are not threatened
• D)policies of mercantilism

---

Definitions:

Fixed Manufacturing Overhead

Costs associated with the production that do not vary with the level of output, including salaries of managers and rent of the factory.

Unit Product Cost

A calculation of the expense required to manufacture one unit of a product, accounting for all production costs.

Financial Advantage

The benefit gained in a financial context, which may involve cost savings, increased revenue, or investment returns.

Variable Costs

Expenses that fluctuate with changes in production output, such as raw materials, packaging, and labor directly involved in producing a product.